Consolidating student loans through government
If you just want to reduce your monthly payment, discuss the federal loan repayment options available with your loan serviser. Single Payment If you have loans with multiple servicers, you send a monthly payment to each.
However, if you consolidate all those loans, you make a single payment to one loan serviser.
Sallie Mae specializes in providing affordable loans for college students at every stage of their development.
The company offers a variety of student specific loans, including loans for undergraduate and graduate students, loans for career training, loans for medical and dental residencies, and loans for law students preparing for their bar exams.
If you have several federal education loans, you may want to consider combining them into one new loan with one monthly payment.
This is called loan consolidation and can help keep you organized and on track with repayment. Department of Education (ED) encourages borrowers with both types of loans to consolidate them into the Direct Loan program.
Visit the Federal Student Loan Consolidation Webpage for more information.
However, the interest rate is fixed for the life of the loan.
Depending upon the total balance you are consolidating, you may extend the repayment period for up to 30 years with consolidation.
The extended period makes the monthly payment amount more manageable; however, the longer your loans are in repayment, the more interest you will pay over the life of the loan.
Sallie Mae is the country’s premier financial services company specializing in the needs of college students and their families.
For those students, Sallie Mae offers five loan repayment options designed to address the borrower’s changing financial situation.