- Potentially reduce your monthly payment obligation (up to 50% in some cases)
- Simplified finances – you make only one payment each month
- Provides budget friendly repayment options such as Income Based Repayment
- Saves you money today when you need it most!
Student loan consolidation allows borrowers (parents or students) 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.
- not be in Garnishment
- 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.
Please note that we cannot guarantee any interest rate due to the time it takes to process an application. We can only provide rough estimates; you should not rely on these estimates for financial planning!Why? Because consolidation takes between 30 – 60 days, and in that time period, you may be making payments, or your loan status may change. Because your interest rate is determined not only on the type of loan you have, but also on how much you owe, we can make no guarantee except to say that your interest rates will never exceed federally specified, published rates.
- Stafford Loans – Subsidized and Unsubsidized
- HEAL/HPSL Student Loans
- Parent and Graduate PLUS Loans
- Existing Federal Consolidation Loans
- Perkins Loans
- Nursing School Loans and more…
It depends. Consolidation is the combination of many loans into one. If you have consolidated in the past with someone other than the U.S. Department of Education, you can’t do it again unless:
- You have new student loans that were not included in the original consolidation.
- Or, you have multiple consolidations from different lenders.
The first payment is due no more than 30 days from the date the consolidation loan is disbursed. Repayment schedule choices include:
- Standard payments (fixed monthly payments over a fixed time)
- Graduated payments (payments which gradually increase over the years)
- Income Based payments (variable payment amounts based upon annual income) and
- Extended payments (more than $30,000 over a 25 year period or more than $60,000 over a 30 year period).
GREAT TIP! Did you know that early repayments are interest-free? It’s true! Every dollar beyond your required monthly payment is paid towards the principal, this significantly cuts down on your total interest potential over the life of the loan.
GREAT TIP! Did you know that you can request a forberence or deferment while you are waiting on your consolidation to be processed? Contact your lender to see if you qualify.
If you’ve previously consolidated, have loans with just one lender, loans totaling less than $20,000, or other conditions which prohibit you from consolidating your federal student loans with us, there are a few options you can pursue:
- Consider a private loan consolidation.
- Consider a personal line of credit from your bank or credit union.
Yes! 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
- Forgiveness of your entire loan if you pass away
How do you defer? Once you consolidate, you will receive paperwork for your payment schedule. At that time, you can request a deferment or forbearance form.
|Depending on the total amount of your consolidation loan, the government has set the following repayment periods:|