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Federal Consolidation

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Consolidation loans were popular for borrowers who needed to extend their repayment term beyond the standard 10 years. 

Consolidation loans are useful not only for getting all loans in one place for easy payment, but also as a way of locking in interest rates. However, changes in the student loan industry have somewhat lessened the importance of student loan consolidation. These include:

  • Stafford and Grad PLUS Loans already carry fixed rates.
  • Many borrowers already qualify for extended repayment terms beyond 10 years.
  • Many borrowers are now taking out their loans from one loan provider and taking advantage of combined or single billing.
  • Recent legislative changes have resulted in many student loan lenders no longer offering federal or private loan consolidation. 

Contact your loan provider or school’s financial aid office if you have questions.