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If you decide to apply for a student loan, you should definitely start with student federal loans. They offer more generous borrower protections (an income-driven plan and federal student loans forgiveness programs). The government will consider your request only after you fulfill Free Application for Federal Student Aid. You can do it on their official website.

After the government considers your request, you will get a financial aid award letter from a school, college, or university that accepts you.

If you can’t pay off your debt, it’s possible to consolidate federal student loans. When you apply for consolidation, a government pays off your debt and creates a new debt with new interest rates and new terms.

Usually, a new loan term ranges from 10 to 30 years. A repayment term starts within 60 days from the day when the loan was paid off.

You will also get a new fixed rate that is based on the average rate of your previous loan rounded up to the next ⅛ of 1%. If the average rate was 5.15%, the new one will be 5.25%.

Students usually ask our experts “Should I consolidate my federal student loans?” We answer “Yes, if this is the only possible decision”. Still, you should try all possible solutions first.