Consolidating private student loans going into default
Unfortunately, the Nelnet site does a poor job of explaining the many consolidation choices and the pros and cons of each route.
Today we will look at these options for private loans and for federal loans.
If you have student loans with Nelnet and want to consolidate them, the process can seem a bit overwhelming.
This is especially true if you are new to consolidation and unsure of your options.
One thing to note about federal consolidation is that it doesn’t change your interest rates.
If you have a private loan, there is no way to convert it into a federal loan. If you have a strong credit score and income, odds are pretty good that you will be able to lower you interest rate though consolidation.This is because you are much less of a credit risk now that you have a degree and job.Interest rates on private loans for borrowers who don’t have a degree or full-time work are usually pretty high, but it isn’t always a sure thing.That being said, this option is definitely not for everyone.By consolidating with a private lender you give up the perks that come with a federal loan.