Federal student loans consolidating again
Once the old loan is repaid, the old debt obligation is removed and the borrower now has a new obligation to a new lender.
Borrowers go through the process to get lower interest rates and payments.
After a lender approves a loan for a new borrower, the borrower must submit information about the old loans to the new lender.
New borrower concerns could be an indication to the new lender that repaying the loans will be a hardship.
By starting the refinance process again, borrowers can find a new lenders willing to offer a loan with the desired terms.
The advantage for most consumers is that there is no limit on the number of times a loan can be refinanced, and many companies offering refinance and consolidation services.
Checking a rate does not commit a borrower to anything.
The consolidation process is initiated by federal borrowers who complete the federal application for student loan consolidation.