Combining multiple student loans into one payment can simplify finances and change repayment terms. This article explains federal consolidation vs. private refinancing, pros and cons, and steps to decide in 2025.
Great Lakes has long serviced federal student loans and helped borrowers consolidate multiple loans into a single repayment. Consolidation simplifies payments and can change eligibility for repayment plans and forgiveness programs, so borrowers should compare trade-offs before proceeding.
Federal Direct Consolidation combines federal student loans into one loan with a weighted-average fixed rate and up to a 30-year term. Nelnet may service consolidated loans, but private loans cannot be rolled into a federal consolidation - private refinance is a separate product.
Reconsolidation combines multiple student loans into one payment. It can simplify finances and lower monthly bills, but may cost protections like federal repayment plans or forgiveness.