Ask Terry Questions Student Loans: Using federal loans to pay off private loans

Student Loans: Using federal loans to pay off private loans

By Terry Savage on July 21, 2015 | College Savings / Student Loans

I am a recent graduate and I have secured a job as a teacher in a high need area. I was wondering if it is possible to have the federal loans consolidate with my private loans to form one big federal loan? Or if I can apply for more federal loans after graduation to pay for the private loans? I have over $70,000 in private loans at 8.9%. Being that I am a public school teacher, my federal loans are put on an income based payment plan and are forgiven after 10 years. I would like to find some way to consolidate my overwhelming private loans into my federal loans but was not sure how to go about doing that or if there is another option for me?

Terry Says:  Well, you have a good deal on the Federal student loans — IF you keep paying them on time.  That forgiveness program is one of the best deals around.  But in answer to your question, NO you cannot extend this deal to your private loans!  However, since you have a job you might be able to refinance those private loans to a much lower rate. Please read my recent column on the subject: YES, You Can Refinance Student Loans!

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