However, some borrowers can qualify for the government's Extended Repayment Plan.
Borrowers who consolidate student loans through the Federal Consolidation Loan Program can refinance one or multiple student loans into one new fixed-rate loan.
The interest rate on your federal consolidated student loan is fixed.
Like a fixed rate mortgage, this means your interest rate stays the same, keeping your monthly payment amount consistent.
Now that you are facing the stress of dealing with the repayment of your student loans, you may want to opt for consolidation.
Variable means that the interest rate can increase at any moment.
Direct Loan Consolidation is offered through the federal government, whereas refinance loan options are offered by private lenders such as Brazos.
Only federal loans are eligible for consolidation under the Direct Loan Consolidation program, whereas federal and private education loans are eligible for refinancing through Brazos.
The result is more payments to keep track of and it’s easier to forget a payment.
A Direct Consolidation Loan allows you to consolidate your student loans into a single loan, with a single monthly payment.