Consolidation significantly lowers your monthly payment, offers the security of a fixed interest rate and provides the convenience of making one single payment each month Consolidation may even be an option for borrowers who have a defaulted loan!
lower your monthly payment,
lock in a low interest rate, and
combine multiple loan balances and make one monthly payment to a single lender.
Before you choose consolidation you may want to carefully weigh the pros and cons...once you consolidate, there is no turning back!
PROS
CONS
It’s easier to keep track of one lender and to make only one payment.
There is no turning back—you can’t undo a consolidation. Be confident of your decision.
You may reduce your payment amount by extending the repayment term.
Your interest costs may increase if the loan you consolidate is repaid over a longer term.
You may choose which loans you want to consolidate.
Private loans are not eligible for the Federal Consolidation Loan.
You may consolidate your loans during your grace period or wait until after you start making payments.
If you consolidate before your grace period is over, you will forfeit your remaining grace.
The government pays interest on the subsidized portion(s) of your consolidation loans during deferment.
You may lose cancellation, forgiveness, deferment, and forbearance benefits on some loans (i.e. Perkins).
There are no fees, credit checks or prepayment penalties on a consolidation loan.
Some lenders require a minimum loan amount or may have other requirements for consolidation.
If you default on your student loans, you may be able to consolidate and get a more manageable payment.
Defaulting on a loan will be reported on your credit report. Consolidation will not change that fact.
If you think that you might want to consolidate, contact one of the lenders listed below to get started!
DON'T FORGET: After consolidation you can still use deferment if you get into trouble. At anytime you feel like you might miss a payment, contact your lender!
Student Loan Consolidation
