Debt consolidation means taking out a new loan to pay off a number of liabilities and consumer debts, generally unsecured ones.
There are several ways consumers can lump debts into a single payment.There are also several consolidation options available from the federal government for those with student loans.Theoretically, any use of one form of financing to pay off other debts is practicing debt consolidation.Loan consolidation can also give you access to additional loan repayment plans and forgiveness programs. Refer to the complete list of federal student loans eligible for consolidation in the application.There is no application fee to consolidate your federal education loans into a Direct Consolidation Loan. Department of Education (ED) or ED’s consolidation loan servicers. Top A Direct Consolidation Loan has a fixed interest rate for the life of the loan.