As a result, many new graduates are falling delinquent or behind on their student loan payments, and some even find themselves defaulting on their student loans.In fact, only 54% of student loan borrowers are actively repaying student loans (source). You can consolidate all, just some, or even just one of your student loans.
Although all of these different loans may be consolidated, you must have at least one outstanding FFEL or Direct Loan to obtain a Direct Consolidation Loan.Current data suggests that there is .7 Billion in outstanding private student loans.As you weigh the pros and cons, keep in mind that timing is critical.With just a few exceptions, you get only one chance to consolidate with the government loan programs.You will lose your rights under the federal loan programs once you choose to consolidate with a private lender.
Direct consolidation loans are now the only type of federal student consolidation loan.
Under the Direct Loan Consolidation Program, you can consolidate Subsidized and Unsubsidized Stafford Loans, Supplemental Loans for Students (SLSs), Federally Insured Student Loans (FISLs), PLUS Loans, Direct Loans, Perkins Loans, Health Education Assistance Loans (HEALs), and just about any other type of federal student loan.
Loans that are not eligible for consolidation include state or private loans that are not federally guaranteed.
These include deferment, forbearance, cancellation, and affordable repayment rights.
Federal Consolidation Loans for Borrowers in Default As of July 1, 2010, the Direct Loan consolidation program is the only government consolidation loan program.
Unfortunately, falling behind on student loan payments comes with both short-term and long-term negative effects.