Consolidating private student loans with sallie mae
You can’t consolidate private loans in the federal Direct Consolidation Loan program, but some private lenders allow you to consolidate federal and private loans together. Your rate is determined by the weighted average of the interest on the loans being consolidated rounded up to the nearest one-eighth of 1%.
The Direct Consolidation Loan program is the right choice if your goal is to simplify the process for repaying federal loans and keep your options open for the many repayment plans available for federal loans. If you’re using private lenders for student loan consolidation, there is a chance you could get a better interest rate and possibly lower monthly payments. That’s because federal loan rates are so low – fixed rates of 4.45% for undergraduates, 6% for graduates in 2017-2018 – that it’s difficult for private lenders to beat the rates and make a profit.
If you sign and date the application, it is a binding contract.
If you submit it without signing, the application can’t be processed.
One other feature that distinguishes So Fi is the pause button for customers who lose their job.Ideally, you would qualify for debt consolidation after graduation.However, you also could qualify when you leave school or are enrolled less than half-time.There are no fees associated with the Direct Consolidation Loan process. Your student loan servicer should be able to answer any questions you have about student loan debt consolidation.To contact your student loan servicer log into your federal student aid account and look for contact information.student loan refinancing programs available in the private sector.