Since the 1970s, Sallie Mae has serviced or provided education loans for families to pay for college and graduate school. Sallie Mae lend consolidation was besides available in the past, but they ’ re no longer an choice for borrowers .
That said, you might have federal loans that are eligible for address consolidation through the federal politics. But your private scholar loans won ’ triiodothyronine be eligible for federal consolidation — lone for scholar loan refinance .
In early words, if you ’ ra searching for alternatives to Sallie Mae loanword consolidation, your options will be different depending on whether you have union or individual scholar loans .
Sallie Mae loan consolidation is no more
Before 2008, Sallie Mae offered consolidation loans. If you had multiple student loans, you were able to combine them through Sallie Mae consolidation .
But Sallie Mae no longer offers a consolidation lend, nor does it offer scholar loanword refinance. The company now chiefly provides private student loans for college, a good as for career train and K-12 schools .
Of course, just because Sallie Mae consolidation loans are no longer a thing doesn ’ triiodothyronine mean you ’ re out of fortune. Borrowers have a wide crop of choices for repaying their student debt, whether they need consolidation ( for federal loans entirely ) or refinancing ( for federal or private loans ) .
Consolidation for your federal student loans
If you have union scholar loans, you can consolidate them with a federal Direct Consolidation Loan. Any holocene Sallie Mae loans won ’ metric ton count since those are private, but people who borrowed years ago might have once had their federal student loans serviced by Sallie Mae, as it used to be a government-sponsored entity before it became a private company .
furthermore, federal student loans serviced by Navient ( an outgrowth company of Sallie Mae ) could besides qualify. According to Federal Student Aid, Stafford Loans, Direct Loans and Direct PLUS Loans are all eligible for consolidation .
consolidation can help you manage repayment more easily since you ’ ll only have a individual bill to track. Plus, it lets you choose fresh terms for the loanword, possibly extending them to 20 or 25 years .
Extending your terms could help if you ’ rhenium struggling to pay your bills since your monthly requital will go down. But it besides means you ’ ll be in debt for longer, so you ’ ll give more concern over the life of the loanword.
Plus, consolidation could cause your interest pace to slenderly increase, as your new rate will be the weighted average of your previous rates rounded improving to the nearest one-eighth of a share degree. inactive, this addition in pastime might be worth it if you need the easing that comes with lower monthly scholar loan bills .
Refinancing for both federal and private student loans
Another repayment option is student lend refinancing. Although Sallie Mae doesn ’ thyroxine offer refinance, other banks, credit unions and on-line lenders do. Leading lenders in the refinance space include Citizens Bank, Sofi and Earnest .
Both private and federal student loans are eligible for refinancing. You can choose to refinance a single loanword, possibly to lower its sake rate, or to refinance multiple loans to combine them .
note that if you refinance federal scholar loans, they basically become secret loans. As a result, you lose entree to federal programs and protections such as income-driven refund plans and Public Service Loan Forgiveness .
To refinance, you must meet a lender ’ second underwrite requirements for credit and income — or apply with a cosigner who does. Depending on your or your cosigner ’ mho creditworthiness, you could qualify for lower interest rates than the ones you have .
Plus, you can choose new refund terms, possibly lengthening your term to lower monthly payments or shortening it to move up your refund date .
Estimate the long-term costs before you make changes
Both consolidation and student loan refinancing give you the opportunity to restructure your debt in a manner that makes it easier to repay .
consolidation can simplify your debt and lower your monthly payments with a longer repayment condition. But refinancing could save you money with a lower interest pace and besides allow you to select a brusque or longer condition, depending on what your goals are .
Whichever option you choose, make certain you understand how it could impact your finances.
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Play around with our scholar loanword payment calculator to estimate the short- and long-run costs of consolidating or refinancing. And if you choose refinancing, shop class round to get your best rates .
By getting a clear reason of your costs of borrowing, you can make an inform choice about refinancing or consolidating your Sallie Mae or federal scholar loans .
Rebecca Safier contributed to this report .