If you’re not familiar with loan consolidation, you may have trouble finding the information you need all in one place.No agency or organization has a centralized Department of Student Loan Consolidation and Forgiveness, after all.Plus, consolidating could make it impossible for you to have a Perkins Loan forgiven or reduced.If you can handle your monthly loan payment as is, carefully investigate how consolidating will change the total amount you’re expected to repay.If you don’t care about the extra cash and just want a consolidation for the simplicity of a single monthly payment, you can use any money you save to pay down the principal.(There are no prepayment penalties for student consolidation loans.) If you’re just finishing college, you’ll want to consolidate your loans after you graduate but before your grace period ends, so that you can take advantage of the lower in-school interest rate. You’ll need to complete all the paperwork and have it processed and approved before repayment begins.federal (or national) student loans, forgiveness programs and how they differ from consolidation, how to apply for a consolidation loan and many others.
You’ll need a verified Federal Student Aid (FSA) ID as well as personal information and financial information, including: Unlike student loan forgiveness, consolidation involves working with a lender that will pay off your existing balances.Use the Bankrate Student Loan Calculator to simulate interest payments and payoff dates on a consolidated student loan.Most lending institutions, including the federal government, offer both online and paper applications.If you have only a couple more years or a few thousand more dollars to go till you pay off your student loans, consolidation is probably more hassle than it’s worth.Switching to a new lending institution might eliminate any benefits you’ve earned, like lower interest rates for on-time payments over the years.