Consolidating a private loan with a federal loan
With only one lender and one monthly payment due for student loans, it is easier than ever for borrowers to manage their debt.
Borrowers have only one lender, the US Department of Education, for all loans included in a Direct Consolidation Loan.
With this plan your payments start out low and increase every two years.
Your monthly payment will never be less than the amount of interest that accrues between payments.
On December 2012 the DOE announced that borrowers with Federal Student Loans may now be able to take advantage of a new repayment plan that could lower their monthly federal student loan payments.
With the standard plan, you’ll pay a fixed amount each month until your loans are paid in full.
Your monthly payments will be at least , and you’ll have up to 30 years to repay your loans with a fixed interest rate.