Loan Consolidation
Student loan consolidation is an option many students choose to manage their loans. A consolidation loan combines your federal student loans into a new loan with a single payment, longer repayment period, and a fixed interest rate.
Consolidation offers the advantages of:
- Convenience of combining all your loans into one easy payment
- Fixed interest rate over the life of the loan, preventing future interest rate increases
- Reduction in monthly payments
- Long-term monthly payment relief
- Extended repayment period based on your total education indebtedness
- Increasing savings with borrower benefits
- No credit assessment, application fee, or prepayment penalties
Federal student loans which may be consolidated include Federal Family Education Loans (FFELP), Federal Direct Loans (FDLP) and other federal programs such as the Federal Perkins Loans. Private or alternative loans cannot be consolidated in a federal consolidation loan.