Loan consolidation may be an option if you have multiple lenders, variable interest rates, significant loan debt and/or different loan types. It allows you to combine multiple federal loans into one new loan at a fixed interest rate. Students do not have to be in repayment or grace statues to consolidate.
For more information go to William D. Ford Direct Loan Consolidation call 1-800-557-7392
Eligible Loan Types –
- Stafford Loans
- Perkins Loans
- Health Profession Student Loans (HPSL)
- William D. Ford Direct Loans
- Grad PLUS Loans
For a list of all your federal loans – https://nsldsfap.ed.gov/nslds_FAP/
A federal consolidation cannot include private loans.
Loan consolidation offers both benefits and disadvantages.
- Fixed interest rates
- Single lender
- Lower, more manageable payment
- Extended repayment period (up to 30 years based on loan total)
- Longer repayment term
- Greater interest paid over life of loan
- Interest may be slightly higher than on original loan due to rounding
- May lose certain deferment options
- May lose current forgiveness benefits
- May lose current loan incentives