Both the private and federal student debts can be consolidated, but not together. When you consolidate student loans, the benefit is the simplicity, i.e. the graduate gets only one or two debts and lenders. But if the debts will also refinanced, then it is possible to get bigger savings.1. When You Consolidate Student Loans, You Can Remove The Co-Signer.Concerning the private student loans consolidation, it is possible to remove the co-signer after 24 or 48 months of making the regular payments. This will free the parent or the relative from the potential liability.2. What Is The Lowest Loan Amount?Most lenders will require a combined sum of $ 5,000 or more for the consolidation for the private debt consolidation and $10,000 for the federal one. You cannot be in a default status with any of your loans. The consolidation process takes about 45 days.3. You Can Reconsolidate, If You Take An Added Loan.You cannot reconsolidate the federal and direct debts unless additional loans are included. For example, if you consolidated your federal debts after your undergraduate degree and then wanted to also consolidate your graduate loans, you can combine the new loans with those that were reconsolidated.4. You Cannot Consolidate Federal And Private Loans Into One Big Loan.There are natural reasons for this rule. If you go back to school, you cannot defer the private loan consolidation payments, but with the federal loan you can. You have to pay the private loan consolidation even if you have difficult economic situation. You cannot get the tax benefits from the paid interests. And you cannot apply for forgiveness on a private loan consolidation.If you will pass away, the private loan goes to the next kin, but the federal loans are forgiven. And finally, the private loans have generally the variable interest rates, so you cannot lock the rate during a low rate period.5. The Need Of The Co-signer.If you are now a recent graduate or undergraduate, it is possible that your lender will require a co-signer for a private loan consolidation. This also depends on the principles of the lender and on the credit history of the borrower. However, in all cases a co-signer will make it sure that the application will go through.The student loan consolidation is a typical financial service process, which is full of details and full of opportunities. That is the reason, why it is wise to turn to the expert and really think this issue thoroughly before jumping into some agreement. I would recommend a low monthly payments, because this system will leave room for the sudden changes in the future. And you can always turn to the lender to pay the loan quicker.
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