Student Loan Consolidation

You are now done with college, now you have to start paying back all of your student loans. Instead of paying a little on each loan why not consolidate your student loans to one monthly payment.

What are the benefits of federal consolidation loans?

  • Potentially reduce your monthly payment
  • You make only one payment each month
  • Provides budget friendly repayment options

What types of loans may be consolidated?

  • Stafford Loans – Subsidized and Unsubsidized
  • Federal Direct Stafford Loans – Subsidized and Unsubsidized
  • HEAL/HPSL Student Loans
  • Parent PLUS Loans
  • Federal Direct Parent PLUS Loans
  • Federal Consolidation Loans
  • Federal Direct Consolidation Loans
  • Perkins Loans
  • Nursing School Loans

Student Loan Consolidation offers students the flexibility of one lower payment each month. Your student loans will be refinanced and combined into one new loan. Both federal student loan consolidation and private student loan consolidation offer the benefit of a significantly lower monthly payment and simplified finances. Student loan consolidation allows borrowers to lock in today’s low rates and to combine several federal student loans into one loan, simplifying repayment. Because repayment can be spread over a longer time period, your monthly payment amount will be lower. There is no credit check, because your federal student loans are guaranteed by the US Government. You will still need to pay your loans until you have been  notified that your loans have been paid off. Consolidation can take anywhere from 30 to 90 days.

Who is eligible for student loan consolidation?

To be eligible for federal student loan consolidation, borrowers must:

  • Not be in default
  • Not be in school more than half time for the loans being consolidation

Here are the things that are not required:

  • You do not need to be employed to consolidate your loans.
  • You do not need to have any form of collateral.
  • You do not need a cosigner of any kind.

One of the greatest benefits of federal student loan consolidation is that you retain all your federal borrowing privileges, such as, deferment of your consolidation payments when you return to school, forbearance of your consolidation for up to 36 months, and forgiveness of your entire loan if you pass away. The best time to consolidate your student loans is immediately after graduating.Doing this allows you to lock in the lowest interest rate on your loans.