You qualify if you can consolidate loans from the eligible loan programs listed below and you are in the grace
period or in repayment for each loan to be consolidated. This process is called consolidation.
Here are the answers to the questions borrowers frequently ask about loan consolidation:
Why should I consolidate my education loans?
Consolidation makes repayment easier and can lower your monthly payment. You’ll be responsible for just
one loan payment each month instead of a separate payment for each of your loans, you’ll deal with just one
lender, and your repayment schedule will be extended. In the case of federal student loans, you can lock in
the new low fixed rate.
Is there a downside to loan consolidation?
The interest rate on the consolidated loan may be higher than the rates of your other education loans. As
a result of the higher interest rate and the longer repayment schedule, the total interest you’ll pay on the
loan can be much greater than you would have paid without consolidating. Only you can decide if a lower
monthly loan payment and the flexibility of dealing with just one lender offsets the increased finance charge.
Do I qualify for loan consolidation?
You qualify if you can consolidate loans from the eligible loan programs listed below (Stafford, PLUS, Perkins,
HPSL) or other federal education loans and you are in the grace period or in repayment for each loan to be
consolidated. Some lenders require you to consolidate a specified minimum amount of loans to qualify for
their consolidation program.
Which types of loans can be consolidated?
Stafford (subsidized and unsubsidized); Federal Direct Stafford (subsidized and unsubsidized); Parent Loan
for Undergraduate Students (PLUS); Federal Direct PLUS; SLS (ALAS); Perkins (NDSL); Health Profession
Student Loans (HPSL); Loans for Disadvantaged Students (LDS); Nursing Student Loans (NSL); Federal
Consolidation Loans; and Federal Direct Consolidation Loans. Although other educati