• Loan Consolidation

     

    What is loan consolidation?  

     

    A Consolidation Loan allows you to combine your federal student loans into a single loan, which may allow you to extend the repayment period. The interest rate for a Direct Consolidation Loan is based on a weighted average of the loans being consolidated. (Note that while extending the repayment period may lower your monthly payments, you may pay more interest over the life of the Direct Consolidation Loan.)

     

     



     

     

    How do I consolidate my loans?

    You can consolidate your loans by doing the following:

    • Apply for a consolidation loan.
    • You will need information/paperwork regarding the outstanding student loans that you owe.

     



     

     

    Is there a downside to consolidation?

     

    Although consolidation can help many students manage their monthly payments, there are some cases when consolidation may not be right for you.

    • You may lose certain benefits (such as cancellation benefits, interest subsidies, etc.) that were offered on the loans being consolidated.
    • If you are close to paying off your student loans, it may not make sense to consolidate or extend your payments. By extending the years of repayment for your loans, you may be increasing the total amount you have to pay in interest. 
      Discuss your options with the financial aid office at your school.

    Learn more about consolidating your loans at: http://mappingyourfuture.org/paying/consolidation/repayment.htm 


    Information from:
    http://www.mappingyourfuture.com
    http://studentaid.ed.gov

     

     


     

     

     

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