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Consolidation Loans
How can consolidation help me manage my debt?
Loan consolidation can offer you many benefits to help manage your education debt. Here are a few of them:
- Lower monthly payments by as much as 45%
- A single monthly loan payment on one bill
- Low, fixed interest rates
- No application fees or credit checks
- A variety of flexible payment plans that allow you to design a repayment plan that best suits your financial needs
- Special borrower benefits that can lower the amount of interest paid over the life of the loan
- No penalties for prepayment, so you can repay your loan early at any time
- A personal loan counselor who can answer your questions and help you through the application process
Is there a downside to consolidation?
Although consolidation can truly simplify and help many students manage their monthly payments, there are some cases when consolidation may not be right for you. Here are some of them:
- If you are close to paying off your student loans, it may not make sense to consolidate or extend your payments.
- Remember that by extending the years of repayment for your loans, you may be increasing the total amount you have to pay in interest. Be sure to discuss your options with a loan counselor before you select a payment plan.
- Not all programs offer the same borrower benefits; make sure you choose a reliable program that offers good borrower benefits and reliable service.
What kind of loans can I consolidate?
You can consolidate any of the following loans:
- Combined loan amounts must equal $7,500 or more to consolidate
- Federal Stafford Loans, unsubsidized and subsidized
- Federal Perkins Loans
- Federal PLUS (Parent) Loans/PLUS
- Direct PLUS Loans
- Direct Loans, unsubsidized and subsidized
- Consolidation Loans
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