You may be contacted by private companies that offer to help you apply for a Direct Consolidation Loan, for a fee. There’s no need to pay anyone for assistance in getting a Direct Consolidation Loan. The fixed rate is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest one-eighth of one percent. The loans that were consolidated are paid off and no longer exist.But before you do, consider the pros and cons and refinancing.While a lower interest rate sounds incredibly appealing, there are definitely some downsides to refinancing.It really didn’t matter what the answer was; all I knew is I wanted to get rid of that debt ASAP.So I dedicated my post-college years to one focused financial mission: to knock out my debt.First, consolidation is when you combine multiple student loans into just one loan.
But the more I research it now, the more I realize that I could’ve saved a few hundreds if not thousand dollars if I had decided to refinance my student loans. But not for you 🙂 If you feel like your interest rates are (literally) compounding your student debt problem, you may want to consider refinancing your student loans to a lower rate.allows you to consolidate (combine) multiple federal education loans into one loan. Top Private education loans are not eligible for consolidation, but for some Direct Consolidation Loan repayment plans, the total amount of your education loan debt—including any private education loans—determines how long you have to repay your Direct Consolidation Loan.The result is a single monthly payment instead of multiple payments. Direct PLUS Loans received by parents to help pay for a dependent student’s education cannot be consolidated together with federal student loans that the student received. Whom do I contact if I have questions about consolidation?There is no cap on the interest rate of a Direct Consolidation Loan.