Student Loan Consolidation
School Loan Consolidation
is a practical repayment tool that refinances your school
loans into one loan, significantly reducing your monthly payment.
Consolidation Loans combine several student or parent loans
into one bigger loan from a single lender, which is then used
to pay off the balances on the other loans. It is very similar
to refinancing a mortgage. Consolidation loans are available
for most federal loans, including FFELP (Stafford, PLUS and
SLS), FISL, Perkins, Health Professional Student Loans, NSL,
HEAL, Guaranteed Student Loans and Direct loans. Some lenders
offer private consolidation loans for private education loans
as well.
Federal Loan Consolidation
Consolidating your federal student loans can reduce your monthly payment. Whether you have one or multiple federal education loans, with the Federal Consolidation Loan program, you could significantly lower your monthly payments and get up to 30 years to repay your parent or student loans.Private Loan Consolidation
Some private student loan program offers interest rate reductions for on-time and automatic payments and there are no pre-payment penalties. 
Aside from a slight increase in the interest
rate on the consolidation loan, there is no
cost to consolidate your loans. There are no
fees to consolidate. |
Both student and parent borrowers can consolidate their education loans. (Students and parents cannot combine their loans through consolidation, since only loans from the same borrower can be consolidated. But they can consolidate their loans separately.) |
The interest rate on a consolidation loan is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest 1/8 of a percent and capped at 8.25%. |