Consolidate Federal Student Loans

Step1

Contact Your Lender: Although as a general rule the traditional lenders are not consolidating student loans, it still doesn't hurt to try. Call your lender today and ask about low annual percentage personal loans or even low interest credit cards. With low credit card annual percentage rates (APR) you might even get a similar rate.

Step2

Federal Direct Consolidation Loans: If you google search "Federal Student Loan Consolidation" one of the first sites you will find is www.loanconsolidation.ed.gov - the federal website for federal student aid. If you select "Borrower Services" it will take you to the federal consolidation website. It takes about a month to get a response from the FSA, but it is the only agency that is currently consolidation the loans.

Step3

What if I can't get the loans consolidated?: In a few instances it may be impossible to consolidate your loans, so what can you do if you just can't afford the payments at this time. First you should contact your lender and simply tell them it is too much to repay at this time (cite your reasons). Many times they will reduce your payment or extend the life of the loan. A second option is to place the loans in forbearance, which allows you to defer payment for a set amount of time until your financial situation improves. A third option is to return to school at least part-time (6 units). This can be done at a junior college or a local university, and is not dependent on what courses you take. This option will allow you to defer your loans without penalty, as long as you are in school.