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 may 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.