A Direct Consolidation Loan allows you to consolidate (combine) multiple federal education loans into one loan.
The result is a single monthly payment instead of multiple payments.
Most of your student loans can be included.
Unfortunately, private education loans are not eligible for consolidation. If you are in default, you must meet certain requirements before you can consolidate your loans.
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Top questions on health insurance and taxes
Q: When can I consolidate my loans?
A: You are eligible to consolidate after you graduate, leave school, or drop below half-time enrollment.
Q: What is the interest rate on a consolidation loan?
A: One of the largest benefits of consolidating your federal student loans is having a fixed interest rate for the life of your loan. The fixed rate is based on the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest one-eighth of 1%.
Q: Does interest rate matter as much as the repayment plan?
A: In many of our clients’ cases, NO. Based on your current financial situation, you may not have to worry about interest at all. Remember, anything that is not paid within 240 months maximum on a repayment plan based on your income would be completely discharged and forgiven. This may allow you to pay less than what you currently owe depending on your financial situation over the life of your loan, family size and loan amount. Find out more about Income Driven Repayment Plans.
Q: When do I begin repayment?
A: Repayment of Direct Consolidation Loans can begin 60 days after the loan is disbursed, or sooner.
Q: Are there different repayment plans?
A: There are several repayment plans that are designed to meet different needs of individual borrowers. In our experience, it is your responsibility to understand what your options are and how they will benefit or negatively impact you. This is where we come in. Learn more about why you should choose Student Loan Processing Direct to prepare and process anything having to do with your federal student loans.