What is Consolidation?
A consolidation loan combines several individual student loans with various interest rates and repayment schedules into one larger loan from a single lender. Consolidation loans are available for federal loans, including the Federal Family Education Loan Program (Stafford; PLUS), Perkins, Health Professional Student Loans, Nursing, and Direct Loans.
Note: Including a Perkins Loan in a consolidation will result in loss of entitlements. You will no longer be able to apply for forgiveness (loan cancellation) for occupations such as teaching, nursing, social work, or law enforcement. See our Cancellation page for descriptions of these benefits.
- Single servicing company
- Fixed interest rate
- One monthly payment, generally lower than individual payments
- Full eligibility for deferment and forbearance
- Extended repayment term from 12 to 30 years, depending on the total loan debt
- Eligible for federal forgiveness programs