Are all student loans eligible for consolidation?

    Published: 06-16-2009
    Views: 10,075
    Justin Draeger with the National Association of Student Financial Aid Administrators explains which student loans are eligible for consolidation and which are not.

    Host: Are all student loans eligible for consolidation?

    Justin Draeger: All federal student loans can be consolidated and to federal consolidation loan, if you only have one single federal student loan that can be consolidated into a federal consolidation loan to get a fixed interest rate for example. What you cant do is take private student loans and federal student loans and combine those into a single federal consolidation loan. The other thing that you may not want to do is you might not want to combine all of your federal student loans into a single consolidation. If you have loans of multiple lenders and some of those loans have great borrower benefits that you dont want to lose, you can consolidate just a few of your loans into a federal consolidation and keep others outside of that consolidation loan. Generally if you consolidate with a private lender they require a minimum balance to consolidate usually they are on 7,500 if you consolidate with US Department of Education, they will consolidate any amount with you.