Consolidating student loans federal program
Based on several assumptions about future variations in interest rates, the loan volume, the percentage of defaulters, cost estimates from the United States Department of Education, it concluded that while doing so would incur an additional cost of million, caused by the higher administrative costs of the FDLP compared to the FFELP, this would be offset by a ,100 million saving comprised in part of avoiding ,500 million in subsidy costs.
Student loan consolidation is a process through which you take out a new loan, which is then used to pay off your other existing student loans.
Also: You can also always keep separate a single loan that has especially good borrower benefits.
Lenders will often offer loan holders certain benefits (discounts for auto-payments, a record of on-time payments, etc.) for being a good borrower.
Note that some consolidation pros apply just to federal loans or just to private loans.
This is one reason that, if you have both types of loans, you may want to consolidate them separately (see below).
Instead of having multiple loans and loan payments, you have only one.
You can consolidate all federal student loans and most private student loans.
But first you need to be sure if you're eligible to consolidate.
Consolidation loans taken out before that date had a variable interest rate, determined by the individual FDLP loan origination center (e.g., in the case of a university, that university) or FFELP lender (e.g., a third party bank).