Bank consolidating student loans
If you do it yourself, consolidating your federal student loans is free.
The Department of Education (ED) says that the online application process takes most people less than 30 minutes to complete.
Currently, there are four servicers for Direct Consolidation Loans: Navient, Nelnet, Fed Loan Servicing (PHEAA) and Great Lakes.
If you're working toward or considering the Public Service Loan Forgiveness (PSLF) program, Fed Loan Servicing may be beneficial since it helps administer the program.
For private loan consolidation, you can choose the lender that best fits your circumstances based on the loan terms you were approved for and the services it offers.
If you are changing from your current lender, then your servicer will also likely change.
Having trouble making student loan payments or keeping all of your loans in order?
Perhaps you're juggling multiple payments across several loan servicers.
You'll choose the repayment plan for your Direct Consolidation Loan when you apply for consolidation.
As a result, you'll have fewer loans to keep track of and fewer monthly payments to make.
Although loan consolidation may not save you money, it could still be worth considering for several reasons.
Because consolidation results in a new loan, the forbearance and deferment limits are reset by the process.
This may be useful if you've had trouble making payments in the past and want to ensure that you have these options in the future.