Q: Is there any possibility of converting my private student loans into federal student loans? I would like to apply for some of the repayment plans that are being offered for federal student loans.
A: For students who currently have private student loans, there is really no option for converting those private student loans into federal student loans, and taking advantage of the low interest rates and multiple repayment options and programs that federal student loans offer. Private student loans are completely different than federal student loans. The only way to begin the process of receiving federal student loans (for current college students who are still in need of student loans) is to file for FAFSA. Once you have taken out private student loans, they remain private student loans, without the ability to transform into federal Stanford or Perkins loans.
A borrower with private student loans, that is dissatisfied with their current private student loan rates or terms may have the option (depending on the terms of your private student loans) to consolidate them with a different private student loan lender for better rates and possibly lower monthly payments. However, borrowers will not have the option of consolidating private student loans into a federal student loan consolidation. As always, it is best to do your research before taking out any type of student loan. Student loans are a large financial commitment, which will follow the borrower for many years. The best rule of thumb when it comes to borrowing student loans for college is to apply for FAFSA before you look into private student loans. FAFSA is the application for federal student loan programs, which offer some of the lowest interest rates and best repayment terms.