Consolidating all your debts into one loan might appear to make life easier but there might be better ways to pay off debts.
Find out more about how debt consolidation loans work, then get free debt advice before you make a decision.
Although all of these different loans may be consolidated, you must have at least one outstanding FFEL or Direct Loan to obtain a Direct Consolidation Loan.allows you to consolidate (combine) multiple federal education loans into one loan. Top Private education loans are not eligible for consolidation, but for some Direct Consolidation Loan repayment plans, the total amount of your education loan debt—including any private education loans—determines how long you have to repay your Direct Consolidation Loan.The result is a single monthly payment instead of multiple payments. Direct PLUS Loans received by parents to help pay for a dependent student’s education cannot be consolidated together with federal student loans that the student received.Bill consolidation is the process of combining multiple credit accounts into one loan.It provides the convenience of requiring just one monthly payment of the borrower.