Consolidating student loans that are in default

We put together this guide to help you get information on all of the top student loan refinance lenders without having to jump around multiple websites.

After you are done, you will know how to refinance and consolidate student loans. You may now have a general idea of how to refinance student loans and how to consolidate student loans, as well as the basics of what each lender offers, but there is much more information you should know before choosing a lender.

There is no application fee to consolidate your federal education loans into a Direct Consolidation Loan. Department of Education (ED) or ED’s consolidation loan servicers. Top A Direct Consolidation Loan has a fixed interest rate for the life of the loan.

You may be contacted by private companies that offer to help you apply for a Direct Consolidation Loan, for a fee. There’s no need to pay anyone for assistance in getting a Direct Consolidation Loan. The fixed rate is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest one-eighth of one percent.

The result is a single monthly payment instead of multiple payments. Direct PLUS Loans received by parents to help pay for a dependent student’s education cannot be consolidated together with federal student loans that the student received.

Each lender has its own specific underwriting criteria, so you may have a higher chance of approval at certain lenders.

Beyond a late payment fee, continuing to let your student loan bills stack up will eventually lead to larger repercussions. Borrowers can default on a loan for any number of reasons.

Some borrowers default because they’re financially unable to make payments.

When you are exploring ways to pay for college, career, or technical schools, you may consider taking out a student loan—money you borrow to help you cover your education expenses and that you must pay back with interest.

Student loans originate from the federal government (called “federal student loans”) or from private sources, such as a bank, credit union, state agency, or school.