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Loan Consolidation
Consolidation allows you to combine all eligible federal education loans into one new loan. However, consolidation is not for everyone.
Pros
- Lock in a low fixed interest rate
- Reduce monthly payments because of the extended repayment period
- Make one payment to one lender
- Transfer Stafford loans from a private lender to the Direct Lending Program to benefit from the Public Service Loan Forgiveness option
Cons
- Extend the life of your loan
- Forfeit original repayment incentives
- May lose the grace period
- May pay more total interest over the extended repayment period
More information regarding consolidation is available online through the Federal Direct Consolidation Loans Information Center or by calling 1-800-557-7392.
