Loan Consolidation
Loan Consolidation allows borrowers to combine one or more of their federal education loans into one new loan to simply repayment, which can extend the repayment term and allow for lower monthly payments.
Should you consolidate? That depends on your objectives. Consolidation is a debt management tool that can:
1. Reduce your monthly payment;
2. Simplify check-writing chores;
3. Establish a weighted average fixed interest rate;
4. Retain Federal student loan advantages – deferment, forbearance, interest subsidy, loan forgiveness.
Steps to consolidation:
1. Identify your education loan situation.
2. Know when to consolidate.
3. Decide which loans to consolidate.
4. Identify your lender options.
5. Understand your prepayment options.
6. Select an application process.
The following websites below provide information and repayment options. Review all the information carefully as well as your loan portfolio and personal circumstances to determine if consolidation is the right choice for you.
National Student Loan Data System - individual loan portfolio information
Federal Direct Loan Servicing Homepage – individual loan portfolio information
Federal Direct Loan Consolidation - information and application processing
Federal Student Aid – Student Aid on the Web - Consolidation Homepage
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