FREQUENTLY ASKED QUESTIONS
Who is eligible to consolidate?
As a FFEL borrower, you are eligible to consolidate your outstand-
ing FFEL loans if you are currently in repayment on your student
When is the best time to consolidate my loans?
Remember, you must be in repayment status on the current loans
you wish to include in the consolidation.
I am still in school. Is it possible to take advantage of consolida-
tion before I complete my education?
The option to place your loans into repayment status while still in
school was eliminated as of July 1, 2006. You cannot consolidate
your loans unless you are in repayment status, which begins six
months and one day after graduation, or after you cease to be
enrolled at least half time.
What will my interest rate be if I consolidate my loans?
The interest rate on your new consolidated loan will be the current
weighted average of the loans you are including in the consolida-
tion, rounded up to the nearest one-eighth percentage.
Is there a minimum to consolidate?
Lenders may require a minimum eligible loan amount before creat-
ing a new consolidation loan. Because each has specific terms, you
should consult with your lender prior to consolidating.
* See FAQs for more information about how consolidation loan interest rates are calculated.
** Your repayment term length is based on your total education debt.
Assuming the highest interest rate on consolidation loans (8.25%), this chart will give
you an idea of what your monthly payment might be after consolidating your loans.
Loan Consolidation Advantages/Disadvantages
• Consolidation eliminates
multiple payments to multiple
lenders or servicers, giving
the borrower a new loan
with one holder and a single
• May provide an opportunity
for the borrower t