More About Consolidation Loans
Through a Federal Consolidation Loan, you can combine all of your federal
student loans into a single promissory note and a single repayment schedule. Consolidation
is not limited to FFELP loans: you can include any federal education loan (e.g.,
Perkins, HEAL, Direct Loans).
A consolidation loan may be a good idea if:
|
You have a lot of education debt.
If the combined balance of your education loans is greater than $7,500, you can
extend your repayment period beyond the standard 10-year maximum. If your combined
balance is as high as $60,000, you can extend repayment to 30 years!
|
|
|
You have more than one servicer.
You can have your single consolidation loan serviced by a company of your choice.
This makes it easier to:
|
Make payments |
|
|
Track the status of your loans;
and |
|
|
Update changes in your status (e.g.,
change of address). |
|
To obtain a Federal Consolidation Loan, you must be out of school. And
you must first consult with a holder of at least one of the loans you wish to consolidate.
If none of your current holders is willing or able to make a consolidation loan
for you, you may contact another lender - that is, someone other than one of your
current holders - to make the loan.
To view a list lenders and servicers with their toll-free numbers and
e-mail addresses, please click here.
|