Student Loan Consolidation

Student loan consolidation allows you to combine one or more of your federal education loans into a new loan that offers you several advantages.
Lower Interest Rate For In-School and In-Grace Consolidation Borrowers who have a Direct Loan or FFEL loan in an in-school or grace period at the time we receive their consolidation application, may benefit from a lower fixed interest rate on the new Direct Consolidation Loan. The difference between a borrower's interest rate during their in-school and/or grace period and during their repayment period can be as high as 0.6 percentage points.
In-school consolidation is available only with Direct Consolidation Loans.
One Lender and One Monthly Payment With only one lender and one monthly bill, you will find it is easier to manage your debt. You will have only one lender, the U.S. Department of Education, for all loans included in your Direct Consolidation Loan.
Flexible Repayment Options You can choose from four different plans to repay your Direct Consolidation Loan, including an Income Contingent Repayment Plan. These plans are flexible to meet the different needs of borrowers. With a Direct Consolidation Loan, you can switch repayment plans at anytime. Grace Period If you consolidate while in-school, you may receive a 6-month grace period before repayment begins.
No Minimum or Maximum Loan Amounts or Fees Direct Consolidation Loans do not exclude anyone based on the size of their loan debt! In addition, consolidation is free. Varied Deferment Options Direct Consolidation Loans offer several deferment options. If you have exhausted the deferment options on your current Federal education loans, a Direct Consolidation Loan could renew those deferment options. In addition, you may be eligible for additional deferment options if you have an outstanding balance on an FFEL made before July 1, 1993, when you obtain your first Direct Loan. Reduced Monthly Payments A Direct Consolidation Loan may lower your monthly payment. The minimum monthly payment on a Direct Consolidation Loan may be lower than the payments on your federal education loans.
Retention of Subsidy Benefits You will keep any subsidies on your old loans.
What are the interest rates on your loans? If a Federal Consolidation Loan offers you a lower rate than your current loans, you may want to consolidate. Currently, the interest rate for a Federal Consolidation Loan is based on the weighted average interest rate on the loans being consolidated, rounded to the next nearest higher one-eighth of one percent. This rate is fixed for the life of the loan and cannot exceed 8.25 percent. Use our online calculator to find out what your weighted average interest rate would be if you consolidate with us.
Are your monthly payments manageable? If you have trouble meeting your monthly payments, have exhausted your deferment and forbearance options, and/or want to avoid default, consolidation may help you. Use our online calculator to find out what your monthly payments would be under each of our repayment plans.
How much are you willing to pay over the long term? Like a home mortgage or a car loan, extending the years of repayment increases the total amount you have to repay.
How many payments do you have left on your loans? If you are close to paying off your student loans, it may not be worth the effort to consolidate or extend your payments.
What consolidation loan benefits do your current lenders offer? Check with the loan holders currently servicing your loans to see if they can offer terms and repayment plans that meet your needs better than a Direct Consolidation Loan.