BEFORE YOU DECIDE
Here are things to consider when deciding whether
consolidation is right for you:
THE INTEREST RATES OF EACH LOAN THAT
YOU WANT TO CONSOLIDATE —
The interest rate for a Direct Consolidation Loan is based on the
weighted average of the interest rates of the loans that you
consolidate. It is fixed for the life of the loan and cannot exceed
8.25 percent. If a Direct Consolidation Loan would offer a lower
rate than your current loans, you may want to consolidate.
HOW MUCH YOU CAN AFFORD
TO PAY EACH MONTH —
If you are having trouble meeting your monthly payments, have
exhausted your deferment and forbearance options, and want to
avoid default, consolidation may be right for you. If you
consolidate, you may reduce your monthly payment amount by
extending your repayment period.
HOW MUCH YOU’RE WILLING TO
PAY OVER THE LONG TERM —
If you extend your repayment period through consolidation, the
total amount you pay over the life of your loan will be higher.
HOW MANY PAYMENTS YOU HAVE
LEFT ON YOUR LOANS —
If you are close to paying off your student loans, it may not be
worthwhile to consolidate.
WHAT YOUR CURRENT LENDERS OFFER —
Check with the lenders who currently hold your loans to determine
whether they can offer terms and repayment plans that meet your
needs better than a Direct Consolidation Loan.
Tired of not knowing who holds your loans, how much you owe
or who to call for help? Do you want to save time and money?
A Direct Consolidation Loan
May Be The Answer For You!
NO MINIMUM OR MAXIMUM LOAN AMOUNTS OR FEES
Direct Consolidation Loans do not exclude anyone based on the size of their
loan debt! In addition, consolidation is FREE.
ONE LENDER AND ONE MONTHLY PAYMENT
With only one lender to deal with and one monthly bill, you will find it
easier than ever to manage your debt. The Department of Education is the
lender and this will never change.
FLEXIBLE REPAYMENT OPTIONS
Direct Consolidation Loans provide four convenient and hassle-free ways to
repay your loans, including an income-contingent r