Federal Consolidation Loans enable borrowers to combine various existing federal education loans into a single, more manageable loan. Repayment terms can be extended, in some cases up to 30 years, based on the amount being consolidated. Consolidation loans do not affect loan size, but they do impact the period of repayment.
There are multiple options for consolidation.
For Federal Consolidation Loans, the interest rate is the weighted average of the interest rates on the loans being consolidated, rounded to the nearest higher 1/8th of one percent. The interest rate may not exceed the maximum rate of 8.25%. Federal student loans can be consolidated only one time. The borrower's lender(s) can provide more information about consolidating loans, and help determine if and when consolidating might be the right option for the individual.
Borrowers with questions about the number of loans they have borrowed, the amount of each loan, or the outstanding balance(s) can check with the National Student Loan Data System (NSLDS).
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