Simply put, this is the process of combining your multiple student loans into a single, bigger loan, possibly with a new lender.
You’ll no longer owe the original loans, and since this consolidated loan is new, it will come with a new interest rate, a new payment policy, and new terms and conditions.
There are both benefits and drawbacks to consolidating your loans, which we’ll discuss in this article.
Choosing to consolidate your loans is an individual choice and the right decision will depend on the specifics of your loans — the types of loans, interest rates, balances, borrower benefits, and more — as well as your current financial situation.
To make payments on your HESC loan, you can have payments automatically deducted from your checking account through SMARTCHECK.
Most federal student loans are eligible to be consolidated under the Direct Consolidation Loan program.
Although student and parent borrowers are each eligible to consolidate their loans, they may not consolidate their loans together.
Married borrowers may no longer consolidate their loans together.
Single Payment If you have loans with multiple lenders/holders, you send a monthly payment to each.
However, if you consolidate all those loans, you make a single payment.