Student Loan Consolidation

Consolidation combines your federal student loans into one new loan, which is then held by a single lender.

Quick Facts About Consolidating Student Loans
– Your new loan will have new terms and may have a new lender, servicer,or guarantor
– Consolidation can be facilitated by an outside agency that works on behalf of a lender
– Many lenders require a borrower to have at least $7,000 in student loans to consolidate
– Spousal consolidations (the combination of spouses’ loans) are no longer allowed
– You cannot consolidate while you are in the middle of your educational program. You must wait until you have stopped or completed the program
– You must have at least 1 eligible federal student loan to consolidate
– You cannot consolidate private and federal loans together
– Consolidators strive to include all outstanding federal student loans when you apply. To ensure all of your eligible loans are included in the consolidation, research your loan history before applying for consolidation. Start with the database at the National Student Loan Data System (NSLDS)
– When you consolidate, your new repayment schedule is reset to the standard repayment schedule. You may then choose a different payment schedule with your lender or servicer
– Loan consolidation cannot be reversed, and you can’t reconsolidate a loan unless you borrow additional federal Stafford or PLUS Loans


Parent’s Section
Parent PLUS borrowers can also take advantage of federal loan consolidation. In addition to consolidating the PLUS loans you have taken for your children, you can also consolidate your own student loans together with your parent PLUS loans or Grad PLUS loans. However, you may not consolidate your loans with your child’s loans.

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