Consolidating loans advice
Consolidation also restarts the clock on deferments and forbearances, giving you extra time for each.
If your monthly payments are manageable, it may be tempting to consolidate out of convenience. Once you near the end of your repayment – once you have a few thousand dollars or a couple more years to go – it’s usually not worth it to consolidate.
And depending on your lender, you may need to meet a minimum balance.
(The Federal Loan Consolidation Program doesn’t require a minimum.) If short-term savings are your priority, consolidation is worth a look.
You’re more likely to have the same monthly payment each month.Here, we’re going to talk mostly about when you might want to pursue federal student loan consolidation, but many of the rules apply to refinancing, too. You take out a new loan, which then pays the balance on all your federal loans, even if they have different servicers (such as Nel Net or Navient) — the companies to which you send your payments.