Loan consolidation is the process of applying for a new loan that will be used to pay off your existing student loan debts.

Loan Consolidation:

  • Allows you to combine one or more eligible loan types into one loan and make payments to one loan holder.
  • May allow you to pay your loan over a longer period of time, resulting in lower monthly payments but greater total debt.
  • May result in a loss of deferment eligibility or other benefits available on existing loans.

Consult your loan holder to determine if consolidation is the best option for you. Your loan holder may be able to tell you the interest rate, approximate repayment period, and approximate monthly payment as well as to suggest consolidation loan lenders or other providers.

Loans Eligible for Consolidation

  • Subsidized and Unsubsidized Federal Stafford Loans
  • Federal PLUS Loans for parents
  • Federal PLUS Loans for graduate/professional students
  • Federal Supplemental Loans for Students (SLS)
  • Federal Perkins Loans
  • Auxiliary Loans to Assist Students (made before October 17, 1986)
  • Federal Insured Student Loans (FISL)
  • Health Professions Student Loans (including loans for disadvantaged students)
  • Health Education Assistance Loans (HEAL)
  • Nursing Student Loans (NSL)

Interest Rate

The interest rate on a Federal Consolidation Loan is the weighted average of the interest rates of the loans being consolidated, rounded up to the nearest 1/8 of one percent with a maximum rate of 8.25%. This interest rate is then fixed for the life of the loan.

If you consolidate HEAL loans, the portion of the consolidation loan that repays the HEAL loans has a variable interest rate that changes annually.

Repayment Period

You’ll have from 10 to 30 years to repay your consolidation loan, depending on the amount of your debt and the repayment option you choose. The maximum time you are allowed to repay your Federal Consolidation Loan depends on the amount of the loan and any outstanding amounts you owe on other educational loans that you do not consolidate. Use the loan consolidation calculator below for an estimate of your monthly payments.