What is Loan Consolidation?
combines multiple eligible federal loans into a single new loan.
Benefits of a Direct Consolidation Loan:
- Lower Monthly Payments: Consolidation can reduce your overall monthly payments.
- Flexible Repayment Plans: Choose from four repayment options and switch plans as needed.
- No Minimums or Fees: No minimum loan amount is required, and consolidation is free.
- Single Payment: Manage your debt easily with one lender (U.S. Department of Education) and one monthly payment.
- Deferment Options: You may qualify for renewed deferment benefits.
- Subsidy Retention: Subsidized loans remain subsidized after consolidation.
Should You Consolidate?
- Payment Struggles? Consolidation can help if you’re struggling with payments and want to avoid default.
- Too Many Payments? Simplify by combining multiple loans into one payment.
- Variable Interest Rates? Consolidation locks in a fixed rate for the life of the loan.
- Long-Term Costs? Extending your repayment term increases total costs.
- Near Payoff? If you’re close to paying off your loans, consolidation may not be worth it
Contact Information:
Phone: Federal Student Aid Information Center 1-800-557-7392 (TDD: 1-800-557-7395)
Online: