Federal Student Loan Consolidation

Federal student loan consolidation is a fixed-rate refinancing program that combines all of your existing federal student loans into one new loan. Consolidation is a great tool for managing your finances - providing immediate payment relief and long term benefits.

  • Cut your monthly student loan payment up to 50%
  • Simplify your finances down to only 1 payment and 1 loan
  • No credit checks, fees, or application charges

What Qualifies for Federal Student Loan Consolidation?

Federal loan consolidation can include Federal Stafford Loan consolidation, PLUS Loan consolidation, Direct Loan consolidation as well as Perkins Loans, HEAL Loans and all Federal FFELP and Direct Loans taken to pay for your education. Private student loan consolidation is different - You will lose your federal loan benefits if you consolidate your federal loans into a private loan consolidation.

Federal Student Loan Consolidation Payment Relief

One of the key benefits of consolidating your federal school loans is payment relief. By combining all of your student loans into one consolidated loan, you can lengthen your repayment term from the standard 10 years to up to 30 years, depending on the amount of your education debts.

With a lower monthly payment, you'll have more money available to meet other living expenses, including car payments, housing expenses, and career-related necessities. Because there are no penalties for overpayment, you can make larger payments and reduce your repayment term when it becomes affordable. Learn more about how student loan consolidation works in this step-by-step tutorial.

Managing Existing Student Loan Debt Obligations:

  1. If you're having trouble meeting your student loan payments, contact your loan servicer. You may qualify for a deferment, forbearance, or repayment alternative that is more affordable.
  2. Consolidation can help by extending your loan's repayment term beyond the standard ten years. While this will increase the total interest charges, the monthly payments will become more manageable.
  3. Watch your expenses! Just as you need to be cautious when you're in school, you need to be aware of your expenses after you leave school.
  4. Limit credit card usage to absolute necessities. Remember you'll pay more for every charged item because of the credit card's finance charges.
  5. If you must have student credit cards, shop around for low interest rates or call existing credit card providers and ask them for a lower rate.
  6. If you are delinquent or in default, visit our Student Loan Default Assistance page for more help.

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