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Student Loan Consolidation

Do you have loans with more than one lender or servicer? Do you have a large student loan balance? If you answered yes to either one of these questions, you may want to consider consolidating your federal student loans. With consolidation all of your individual federal student loans are paid off and one new loan is created for you. Depending on your total balance, your repayment term may also be extended lowering your monthly payment amount. Once student loans are consolidated, the interest rate is based on the interest rates on your loans at the time you consolidate and this average remains your interest rate for the life of the loan. 

As of July 1, 2010, all new student loans, including consolidation loans, must be made under the Federal Direct Loan Program (FDLP). A consolidation with FDLP will put all of your loans with one holder, the Department of Education. If you would like more information about a student loan consolidation with FDLP, please visit their website at An FDLP consolidation can usually only be done once, so it is important to consider all of your options before you consolidate. 

Repayment Term

The length of your repayment term on a federal consolidation loan will depend on the total principal balance of the loans you choose to consolidate. The chart below indicates the maximum repayment terms:

Consolidation Balance Maximum Repayment Term
Less than $7,500 10 Years
$7500 - $10,000 12 Years
$10,000 - $20,000 15 Years
$20,000 - $40,000 20 Years
$40,000 - $60,000 25 Years
$60,000 or more 30 Years

Estimating Your Monthly Payment

To estimate your monthly payment view the consolidation chart or enter your loan amounts into a loan consolidation calculator.

Consolidating Perkins Loans

Perkins loans can be included in a federal consolidation loan, however consider this option very carefully. Not only could it potentially increase the interest rate on these loans, but consolidation may also cause you to lose additional cancellation options that accompany Perkins loans. 

Consolidating a Defaulted Student Loan

You may consolidate a defaulted student loan providing you either:
  • Have made satisfactory repayment arrangements with the holder of your defaulted loan (often requires at least 3 payments be made).
  • Agree to repay the consolidation loan under an income sensitive repayment schedule.

Note: A satisfactory payment arrangement is defined as 3 consecutive, on-time payments. We will work with you to devise a payment amount that is reasonable and affordable within your budget. A break in your payments will require you to restart the process.