What types of loans can be consolidated?
‣ There are almost 20 total loan options in the student loan space that are available for consolidation. A list of approved loans would include the following; Direct PLUS Loans, Direct Unsubsidized Loans, Loans for Disadvantaged Students, Health Professions Student Loans, Health Education Assistance Loans, Nurse Faculty Loans, Nursing Student Loans, Federal Perkins Loans, Supplemental Loans for Students, PLUS loans form the Federal Family Education Loan (FFEL) program, Unsubsidized Federal Stafford Loans, Subsidized Federal Stafford Loans, and FFEL Consolidation Loans and Direct Consolidation Loans (in certain conditions). These loans listed are typically the most common student loans that are able to be consolidated, however, if you do not see your loan on this list, you may want to check with the Student Aid Government website here.
When can I consolidate my loans?
‣ You are generally allowed to start consolidating your student loans after you have left school, graduated or have dropped well below the half-time enrollment at the school per their student handbook. If you are unsure if you meet these requirements please reach out to your school or student loan servicer to see if you qualify.
What are the requirements to consolidate a loan?
‣ When looking to consolidate your student loans there are a few prerequisites that you will need to meet in order to qualify. First and foremost the loans you are looking to consolidate must be in a grace period or repayment. In most cases, you will not be able to consolidate an existing loan that has been consolidated unless you are looking to add an additional loan for consolidation. To find out about more about what is needed for other instances of student loan consolidation that were not provided in this section please check out the official Student Aid website.
What is the interest rate on a consolidation loan?
‣ Once your student loan has been approved for consolidation and the consolidation process has happened, you should end up with a new fixed rate student loan. What is a fixed interest rate? A fix interest rate is an interest rate on a liability (your loan) the remains the same for the entirety of the loan’s term. A good example of this would be a $25,000.00 loan with a fixed interest rate of %5.00 for 15 years. The interest rate will remain at %5 throughout the term of the loan.
When do I begin repayment?
‣ Loan repayment with vary depending on the new loan servicer. Generally, they will let you know within 60 days of having your student loans consolidated. This means that the initial loans payments have been dispersed and you are now paying the loan servicer.