Federal Consolidation Loans
Applying for a Federal Consolidation Loan can help to lower monthly payments while giving the borrower more time to repay. Although a consolidation loan can help to ease the burden of monthly payments, the borrower will pay much more in interest over the life of the loan and/or lose some of the provisions of their original loan promissory note. The advantages and disadvantages should be weighed carefully before agreeing to a loan consolidation. Private alternative student loans cannot be included in a Federal Consolidation Loan.