What are the benefits of consolidating my loan?
All of your existing loans will be consolidated into the Federal Loan Forgiveness Program with the Department of Education. You will only have to worry about one payment instead of multiple payments. Your debt will therefore be much easier to manage.
Will I receive a reduced payment?
In a lot of cases, yes. You will see your payment in the new consolidated loan decrease significantly. However, we must remind you that there are multiple plans through which to repay your loans, one of which is the Income Based Repayment Plan, which allows your payment to be based on your annual income.
Can I Defer My Payments?
Yes. You are welcome to defer your payments if necessary once you have consolidated your loans.
Am I Eligible for a Direct Consolidation Loan?
Possibly. Borrowers must have at least one Direct Loan of Federal Family Education Loan (FFEL) that is in grace, repayment, deferment, or default status to qualify. If you are currently in school, you do not qualify for a consolidation loan.
If I am already consolidated, can I do so again?
Yes. You are able to as long as you include at least one other FFEL or Direct Loan in the new consolidation.