|
|
|
 |
Federal Stafford Loans |
|
|
|
|
|
|
|
|
|
|
|
Parent Loan for Undergraduate Students (PLUS) |
|
|
|
|
|
|
|
Private/Alternative Loans |
|
|
|
|
|
|
|
Other Loan Information |
|
|
|
|
|
Consolidation of Federal Student Loans
|
What loans can be consolidated? Federal Family Education Loans (FFEL) and Direct Loans, including:
- Stafford
- PLUS
- SLS
- Previous Consolidation Loans
- Perkins Loans
- Health Professions Student Loans
- Nursing Student Loans
- Health Education Assistance Loans (HEAL)
- Federally Insured Student Loans (FISL)
*Alternative loans are not eligible to be included in a Federal Consolidation loan
Pros:
- Consolidation locks the interest rate.
- Consolidation can allow the borrower to bring together loans from multiple lenders for a single repayment schedule (i.e., one monthly payment).
- Consolidation may allow the borrower a longer repayment period, which will reduce the amount of the borrower's monthly payment.
- Consolidation can allow a borrower to clear an overaward of stafford loans or clear a defaulted student loan.
Cons:
- Consolidation locks interest rate, for older stafford loans that have variable interest rate.
- Consolidation may increase the total cost of the borrower's loan, the longer the repayment the more interest you will pay.
- The borrower may have to forfeit all or a portion of his or her grace period.
- The borrower may lose certain borrower benefits with their current loans.
- Certain deferments may be lost; however, borrowers retain their ability to request most major deferments after consolidation.
- Borrowers who consolidate Perkins loans lose deferment subsidy and cancellation eligibility
Some information about consolidation:
Federal Consolidation Loan
TG: Consolidation Station
For more information on consolidation please contact your lender.
|
|
