Help on consolidating student loans
But borrower protections and repayment options on private consolidation loans can vary wildly from lender to lender.Betsy Mayotte, director of regulatory compliance for the student debt assistance group, American Student Assistance, makes sure to tell borrowers to stay away from consolidation loans that combine federal and private loans.
One major advantage of federal consolidation loans is that borrowers don’t need a stellar credit score to qualify, they can apply any time (even if their loan is in default) at Loan gov, and they’ll always get a fixed interest rate.
Private lenders require borrowers to pass a credit check to get the best rates.
That means if your score isn’t superhigh, you could wind up paying more if you consolidate.
Know that you might need a higher credit score if you want the best rates without a co-signer.
Federal consolidation loans come with borrower protections private lenders may not offer.