Federal Loan Consolidation
The only resource for loan consolidation is through the Federal Direct Loan Consolidation program. However, you should be aware that consolidation is not the only way to access long term repayment options. Students have the ability to extend repayment for up to 25 years without consolidating. Borrowers should consider all of their repayment options before jumping into consolidation. Visit the Repayment Plans and Strategies page to review the available payment plans.
There may be situations when consolidation could be an appropriate solution to dealing with student loan debt.
1. To simplify your loan portfolio
2. To take advantage of Public Service Loan Forgiveness
3. To lock in low variable interest rates
4. To avoid defaulting on loans
Even if you have not previously borrowed through the Federal Direct Loan program, you may be eligible to consolidate your loans through the Direct Loan program.Before a borrower consolidates their student loans they should ask the following questions of themselves.
1. Do I have student loans with variable or fixed interest rates?
2. Has the Grace Period expired on all of my loans?
3. Is it more beneficial to me to consolidate now or at a later date?
4. Who is/are the current servicer(s)? (This is subject to change)
5. Do I have plans to participate in Public Service Loan Forgiveness?
6. Do I need to consolidate to make all of my loans eligible for Public Service Loan Forgiveness?
Borrowers are now able to access the consolidation application and promissory note at www.studentloans.gov. You will be required to provide your FSA PIN to access this site. Borrowers with loans that have entered default must complete the consolidation application at www.loanconsolidation.ed.gov. Borrowers should remember that student loan repayment is a long term relationship.
You must be conscious of the decisions you make about your student loan repayment to ensure that the relationship is beneficial. If you have any questions regarding if consolidation is right for you, please contact the Student Financial Services Office for assistance. We can be reached at 314.977.9840 or firstname.lastname@example.org.