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You can consolidate student loans

Student loan consolidation is a popular loan management option among borrowers; it simplifies repayment by condensing multiple loans and can save money on interest.

However, consolidating your student debt isn’t the solution for every borrower. In some situations, it causes more harm than good.

You can consolidate both federal and private loans, but when it comes to federal loans, you should try consolidating them through the Department of Education. If you consolidate federal student loans with a private lender, you’ll lose all benefits and protections that are available for federal student loan borrowers. These include income-driven repayment plans and access to forgiveness programs.

Student loan consolidation may be a good fit if you:

—You have high-interest private student loan debt

—Your new loan (whether federal or private) carries a much lower APR than your current student loan debt.

Financial benefits

The amount of interest you pay on student loans can add up over time, but consolidating can give you the financial relief you need.

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