Department education consolidating private loans
In addition, many states and colleges use your FAFSA data to determine your eligibility for state and school aid.Some private financial aid providers may use your FAFSA information to determine whether you qualify for their aid. When you fill out your FASFA, you will also create an FSA ID.
The total savings are greater if the private consolidation loan offers a much lower interest rate or if the borrower has a much larger loan balance. Department of Education does not offer as many benefits for Parent PLUS Loans as it offers for federal student loans like Direct Subsidized and Unsubsidized Loans, and the Grad PLUS Loan.
To explore your options, contact your loan servicer directly.
If you don’t know who your private student loan servicer is, look at a recent billing statement.
Several lenders of private student loans, including Citizens, So Fi, and Common Bond, are offering to consolidate federal education loans into private student loans for some borrowers.
When is private consolidation of federal education loans appropriate? Students should still borrow federal first, because federal borrowers of Parent PLUS Loans may be able to obtain significant savings by refinancing their PLUS Loan into a private student loan.
And some of the companies that promise student loan debt relief are scams.