If you’re a parent with PLUS loans and you also have other federal student loans, you may want to consolidate your PLUS loans in a separate consolidation loan; consolidating them with your other federal loans will make that consolidation loan ineligible for all income-driven repayment plans except income-contingent repayment.
If you have Perkins loans, think twice before consolidating them; you’ll lose access to Perkins loan cancellation if you do.
You can even consolidate one student loan if you so desire.
The benefit of loan consolidation is that instead of making multiple monthly payments, that payment will be consolidated into one, and the payment should be significantly lower.
On the standard repayment plan for direct consolidation loans, you’ll make equal monthly payments for 10 to 30 years, depending on your total federal student loan balance.You’ll save money if your new loan has a lower interest rate.Your financial history — including your credit score, income, job history and educational background — will dictate your new interest rate when you refinance.When you consolidate federal loans, your new fixed interest rate will be the weighted average of your previous rates, rounded up to the next ⅛ of 1%.So, for instance: If the average comes to 6.15%, your new interest rate will be 6.25%.