Consolidating private loans government

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Refinancing is credit-based, meaning your credit score is a primary factor in whether you qualify and the new interest rate you'll receive.

The lender will also take your income and current debt-to-income ratio into account.

Also, if you're already working toward federal loan forgiveness, consolidating loans may wipe out any credits you have already earned.

Consolidating Perkins loans will disqualify you for forgiveness programs specific to those loans, but you can always leave them out of the consolidation process.

That means the interest rate on your largest loan balance will have the biggest impact on your final rate. Consolidating federal loans comes with several unique benefits: No credit or income requirements: Anyone with federal student loans can get a consolidation loan.

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You do not need to meet credit requirements to consolidate federal loans, and after consolidating you'll pay a single bill to your student loan servicer, the company that accepts payments on behalf of the government. Your new interest rate will be a weighted average of your previous loans' rates, rounded up to the next one-eighth of 1 percent.Certain public service workers may qualify for loan forgiveness in just 10 years, tax-free.Extending your payback period can be tempting, since it will reduce your monthly payment.Refinancing and consolidation are two ways to bundle multiple student loan payments into one—and in the case of refinancing, potentially save money on interest.Whether to go for one of these options, though, depends on the type of loans you have and how much you stand to save.

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