>>>>>What is student loan consolidation?
=>Student loan consolidation is a program that repackages all of your federal student loans into a single loan with one fixed interest rate and one payment.
>>>>>How does student loan consolidation differ from refinancing?
=>The terms consolidation and refinancing are sometimes used interchangeably, but student loan consolidation is a unique program that applies only to federally guaranteed student loans. These include:
◙○ Direct Subsidized Loans
◙○ Direct Unsubsidized Loans
◙○ Subsidized Federal Stafford Loans
◙○ Unsubsidized Federal Stafford Loans
◙○ Direct PLUS Loans
◙○ PLUS loans from the FFEL (Federal Family Education Loan Program)
◙○ Supplemental Loans for Students (SLS)
◙○ Federal Perkins Loans
◙○ Federal Nursing Loans
◙○ Health Education Assistance Loans
◙○ Some existing consolidation loans
Refinancing means that you are taking out a new loan to pay off existing loans. Most often, you would refinance private student loans. It is possible to refinance private and federal student loans together, but it's not always advisable because federal student loans come with certain benefits that are lost if you refinance them with a private lender.
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