Student Loan Consolidation
Student loan consolidation can be a
useful debt management tool.
Consolidation enables you to
bundle all federal educational loans
into a single loan, resulting in a
single payment made to a single
lender.
However, you should carefully
consider whether consolidation is
the best course of action. If you
have questions regarding student
loan consolidation, please contact
the Iowa College Student Aid
Commission. A client services
representative will be happy to
assist you.
The following discussion pertains to
borrowers in both the Federal
Family Education Loan (FFEL) and
Federal Direct Loan Programs.
Exceptions are noted.
Borrower Eligibility
• You may be in or out of school,
in a grace period, or in
repayment.
• You must not have another
consolidation loan pending with
another lender or the Direct
Loan Program.
• More information is available at
the following websites:
• FFEL Consolidation:
http://www.iowacollegeaid.org/loa
ns/loan_consolidation.htm
• Direct Consolidation:
http://www.loanconsolidation.ed.g
ov/hfaq.shtml
Eligible Student Loans
• Federal Subsidized and
Unsubsidized Stafford Loans
(FFEL and Direct)
• Federal PLUS Loans (FFEL and
Direct)
• Federal SLS Loans
• Federal Perkins (NDSL) Loans
• Federal Nursing Student Loans
• Health Profession Student Loans
• Health Education Assistance
Loans (HEAL)
Choosing a Consolidating
Lender
• If your FFEL Program student
loans are held by a single
lender, you must attempt to
consolidate with that lender.
• If your FFEL Program student
loans are held by multiple
lenders, you may select any
consolidating lender.
• Some lenders may offer
borrower benefits for timely
payments.
Options for Postponing
Payments
If you are having difficulty repaying
your consolidation loan, you may
be eligible to postpone your
payments. Check with your lender
to see if you qualify for one of the
following:
• In-School deferment,
• Un