Types of Student Loans You May Consolidate

Federal Stafford Loans (formerly Guaranteed Student Loans)
Graduate PLUS Loans
Federal PLUS Loans
Federal SLS (Supplemental Loans for Students)

Federal Direct Loans
Perkins Loans (formerly NDSL)
Health Professional Student Loans (HPSL)
Nursing Student Loans (NSL)

Here are some points to consider:
You must owe at least $7,500 in eligible loans.
The loans must be in their grace or repayment periods. Interest rates are weighted and fixed, not to exceed 8.25 percent.
You can time your loan consolidation to lock in a new low fixed interest rate. For example, if you consolidate your loans during their grace periods, when interest rates are lower, the interest rate for your Consolidation Loan will be calculated using these lower interest rates.

The term of consolidation can vary from 10 to 30 years, depending on the balance of the loan.

The interest on Federal Subsidized Stafford Loans remains subsidized during deferment periods if the loans are consolidated.

There are three repayment options available:

Standard Repayment Schedule, under which the borrower pays the same amount for each installment throughout the life of the loan. (Typically 10 years, excluding in-school, grace, deferment and forbearance.)

Graduated Repayment Schedule, under which the amount of the borrower’s installment payment is scheduled to change – cannot exceed 10 years.

Income-sensitive Repayment Schedule, under which a borrower’s monthly payment is adjusted annually based solely on the borrower’s expected total monthly gross income.

Consolidation may be a wise choice if you are looking for a lower monthly payment and more time to pay the money back, but it may not be the best solution for you. Remember that there is no penalty for early repayment or prepayment on any federal student loan, so even if consolidation is a good option now, you can always pay the loan off earlier (and save interest) when you are able to afford higher payments. Consult your student loan lender for more information.

It takes up to 45 days to process a loan consolidation application. First payment is made within 60 days of the date the consolidation loan is originated.