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Repayment Assistance: Consolidation

What you need to know about consolidation

You may lower your monthly payment by consolidating student loans with different interest rates, repayment plans, and lenders into a new loan. However, consolidation may have some disadvantages, so carefully consider the pros and cons. To consolidate, you must be in your six-month grace period or repaying your loans.  

Loans You May Consolidate

  • Stafford Loan (subsidized or unsubsidized)
  • Perkins Loan
  • PLUS Loan
  • Health Professions Student Loan (HPSL)
  • Health Education Assistance Loan (HEAL)
  • Nursing Student Loan (NSL)
  • National Direct Student Loan (NDSL)
  • SLS Loan (formerly ALAS Loans)
  • Federal Insured Student Loan (FISL)
  • Consolidation Loan

Pros and Cons
Before you consolidate, carefully review your options and weigh the pros and cons to be sure consolidation is the right choice for you. Our Loan Consolidation Pros and Cons is available in English and Spanish (Spanish version to be updated soon).
  You can also review a guide to frequently-asked questions and resources.

Interest
The interest rate is a fixed, weighted average of all the loans you consolidate, rounded to the next highest 1/8%, up to 8.25%.

Repayment
You can choose a standard, graduated, income-sensitive, or extended repayment plan and change your repayment plan once a year. You repay the loan over 10 to 30 years, depending on your total student loan debt. Check the Consolidation Loan Calculator for estimated payment amounts.

Applying
Talk to your lender to request a consolidation loan. If you are making payments on your student loans, your lender can temporarily stop them while your consolidation loan is processed.

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