Consolidating student loans an option again
11/16/2010
By Credit.com Staff
Consolidating student debt was fairly common prior to the financial crisis, but lending standards may have prevented the practice until recently, according to a report from Scripps News. This is particularly easy if a consumer has old federal loans carrying a higher variable rate than the current figures.
The Federal Direct Consolidation Loans center will allow many who obtained money from the government to help finance their education to consolidate their loans, the report said. Its website offers visitors information about how to consolidate their debt, as well as a calculator which will allow them to find out how much they'd have to pay each month if they choose this option.
Those with private loans may not have such an easy time, especially if their debts are currently in default, the report said. Many lenders can institute changes including increased interest rates and excessive fees.
Many consumers may be looking for a way to refinance or consolidate their student loans in an effort to make them more affordable.
