Student loan consolidation is a service widely advertised by the student lending industry that can sometimes be confusing for borrowers. You may even receive solicitations by mail or by phone from companies you have never heard of before. There are certainly benefits to consolidation, but their can also be underlying drawbacks, and our office wants to ensure you have the facts you will need to consider before consolidating your student loans.

Consolidation defined:

 A consolidation loan combines several student loans into one bigger loan from a single lender. The consolidation loan is used to pay off the balances on the other loans.

*For a quick and easy way to calculate your weighted average, go to
https://loanconsolidation.ed.gov/loancalc/servlet/common.mvc.Controller?controller_task=startCalculator

 

What types of loans are eligible for consolidation?

• Direct Subsidized and Unsubsidized Loans
• Federal Subsidized and Unsubsidized Federal Stafford Loans
• Direct PLUS Loans and Federal PLUS Loans
• Direct Consolidation Loans and Federal Consolidation Loans
• Guaranteed Student Loans
• Federal Insured Student Loans
• Supplemental Loans for Students
• Auxiliary Loans to Assist Students
• Federal Perkins Loans
• National Direct Student Loans
• National Defense Student Loans
• Health Education Assistance Loans
• Health Professions Student Loans
• Loans for Disadvantaged Students
• Nursing Student Loans