What is Consolidation and how does it work?

There may be advantages to consolidating (combining) your Federal Student Loans into one loan, starting with the convenience of making a single monthly payment. Consolidation generally extends the repayment period, resulting in a lower monthly payment. This may make it easier for you to repay your loans. However, you will pay more interest if you extend your repayment period through consolidation since you will be making payments for a longer period of time.

For more information and to apply for a loan consolidation please go to https://studentloans.gov/myDirectLoan/consolidationRedirect.action?webSource=DLCS.

Topic Information
  • Topic #: 8243-66
  • Date Created: 10/2/2012
  • Last Modified Since: 9/15/2014
  • Viewed: 425
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