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Can credit card debt and private education loans also be included in a Direct Consolidation loan?

April 26, 2017consolidation credit card debt Education included loan Loans private

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Can credit card debt and private education loans also be included in a Direct Consolidation loan?

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No. A Direct Consolidation loan may not include credit card debt or nonfederal education loans such as private education loans that are offered by commercial banks and credit unions. It is important to be aware that if you combine other types of loans or debts with your federal student loans into a nonfederal consolidation loan, you risk substantially raising the overall interest rate on the loan. In addition, you will lose the deferment eligibility and loan forgiveness options that a Direct Consolidation loan provides. For information about the application process, contact the Direct Loan Servicing Center. TG can also help you! Contact us at (800) 845-6267 or send an e-mail message to cust.assist@tgslc.org to discuss whether consolidation is a good option for you.