What Loans Are Eligible
Many of our customers have questions regarding which loans are eligible for the best student loan consolidation program. We'll explain more about eligibility here.
Best Student Loan Consolidation Program: Federal Loans
The best student loan consolidation program eligibility requirements differ slightly between federal student loan and private student loan consolidation. For the federal best student loan consolidation program, you must be a federal loan holder. This means your loans were issued by the federal government, not a private lender. For federal consolidation, we calculate your new interest rate by taking the weighted average of your existing interest rates and rounding that number to the nearest one-eighth of a percentage. The maximum interest rate for the federal best student loan consolidation program is 8.25%. With federal consolidation, there are no application fees or credit checks required. Here are some examples of qualifying federal loans:
- Stafford Loans
- Perkins Loans
- PLUS Loans & Grad PLUS loans
- Supplemental Loans for Students
- Health Education Assistance Loans (HEAL)
- Direct federal student loans
Best Student Loan Consolidation Program: Private Loans
The best student loan consolidation program also allows private student loans to be consolidated. Basically, private student loans are loans that are issued by private lenders, not the federal government, and do not qualify for the federal best student loan consolidation program. Private student loan consolidation is a little different from federal consolidation, in that there are certain fees and credit requirements associated with it, much like any other privately-issued loan. You will need to pass a credit check or recruit a co-signer to qualify. The private best student loan consolidation program usually comes with a low, fixed interest rate for a limited initial period, followed by an interest rate that will fluctuate with market conditions. As with all of our services, the private best student loan consolidation program does not charge any prepayment penalties.