How To Consolidate Student Loans With the Government

Loan consolidation is one of the ways a person can start improving their financial situation. By combining loans into a single plan, it makes debt easier to manage. Loan consolidation, however, can be a confusing process if you don’t know what to do. Here’s how to consolidate student loans with the government.

How Does a Federal Student Loan Consolidation Work?

As the name implies, this type of consolidation only works for federal/government loans. You can combine multiple loans into a single one through the Department of Education. Many people pursue this to extend the loan or gain access to federal programs. By doing this, they may be able to qualify for loan forgiveness or a lighter repayment option.

Federal student loans do not lower your interest rates or payment unless you get into a repayment plan. The truth is you may even pay more in interest if the loan extends. The benefit is that you’ll only pay one bill once a month. It also becomes easier to start lowering the interest it accrues by paying off the principal.

How Do I Do It?

The first thing you need to do is fill up a complete consolidation loan application. You’ll go to the student loans government website and finish the form in one sitting. It takes around half an hour to complete it. In the form, you’ll fill out the following:

The loans you want to consolidate
The repayment plan you want to take

Some people get into an income-driven plan which changes the amount they pay based on the income they’re currently earning. However, doing that requires you to submit another form. Make sure to double-check the information before submitting it. Then, you’ll wait for your loan servicer to confirm completion.

Is It Worth it?

A consolidation provides you with more control and a way to bounce back. Consolidation is available for people who’ve defaulted and want to fix their student loan situation. There is no credit check necessary, and the government does it for free. You don’t have to approach a different company to file for consolidation.

However, it may not be an option for everyone. The interest rate you get with the new loan will be a weighted average of the consolidated loans. A high-interest rate on one may drag everything else upward.

Ultimately, you have to weigh your options. If you’re comfortable extending your loan, then it can help you out. However, it does mean you might pay more over the loan’s life.

Take Your Time

When you’re considering consolidation, you don’t have to take action right away. Make sure to take into account the new terms and repayment you’ll get into before applying. You may even want a second opinion to make sure that you’re making the right move. Doing your due diligence will help remove any doubt when you decide to act.

Use Chipper for Lower Payments

Chipper can help you find a student loan repayment plan that actually fits into your budget. You simply fill out your information and link your student loan account for us to generate your options in seconds. We help the average student loan borrower save over $300 a month off their student loan monthly payment. Lowering your monthly payment plan can game changing for your personal finance and can be done in minutes! Sign up for Chipper today to get on track with your student loans.

Use Chipper for The Best Path to Forgiveness

Finding your path to student loan forgiveness is easier than ever before. Chipper helps members find better Income-Driven Repayment (IDR) plans every day. Once enrolled in an eligible repayment plan, we can help you explore your forgiveness options and understand your path towards forgiveness. Sign up with Chipper today and get on track with your student loans.

Use Chipper for Round-Ups

Paying off your student loans doesn’t have to be a long and painful journey. Round-Ups are a way to directly pay off your loans with your everyday spending! By tracking your linked spending account(s), we will calculate the rounded up amount from each transaction in a week (IE spending $4.28 would add $0.72 to the weekly amount). We then initiate a payment towards your student loan for the weekly amount. Get chipping away on your student loans with Chipper today.

Use Chipper for Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program was created to provide relief to borrowers aiding the public sector. Unfortunately, 30% of applicants are denied due to incorrect paperwork. We can help! Chipper was created to solve this issue by assisting borrowers in understanding their options as well as allowing forgiveness eligible users enroll into the best forgiveness program available. Sign up for Chipper today to see your student loan forgiveness options and get the forgiveness you deserve.

Use Chipper for Teacher Loan Forgiveness (TLF)

The Teacher Loan Forgiveness (TLF) program was created to enable teachers working in Title 1 schools to receive student loan forgiveness of up to $17,500 (depending on their teaching subject). Chipper has helped teachers from all over the country qualify for TLF program and can help you get the forgiveness you deserve today. Find out if you qualify for forgiveness in minutes with our employer search tool.