How to Reconsolidate Student Loans
- 1). Consolidate only your non-federal loans. Keep your federal loans separate from your other student loans, no matter what. Federal loans come with significantly lower interest rates, and if you combine them with your other loans, you will lose this rate. (The federal government does not allow you to consolidate all your private loans to a federal loan because the government does not purchase other loans; however, you may move the federal loans to a third party provider such as SallieMae for easier management.)
- 2). For loan consolidation services, select the loan provider with the best interest rate currently. Call the company's telephone number listed on its website or your monthly billing statement and tell a customer service representative that you wish to consolidate your loans.
- 3). Provide the customer service representative basic information regarding your loans held at other financial institutions, including account name and number. This information is needed for the company consolidating your loans to purchase the loans from the other company or companies.
- 4). Ask to reconsolidate to your loans to the lowest interest rate. When you first took out your student loans the interest rate may have been higher than current loan programs. Be aware that you may not qualify for the lower payment if you have missed payments or been late. If you are rejected for a lower rate, ask to be placed on a contingency plan. This extends your payment period but lowers the amount you pay every month.
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