Can i consolidate federal student loans

If you owe a grant overpayment and fail to pay or set up a payment plan, you will lose eligibility for future aid and possibly face collection. If you have a TEACH grant and you do not meet the conditions required for TEACH grants mainly serving as a full-time teacher for the required time period in a certain type of school , your grant will be converted to a Direct unsubsidized loan.

Due to problems and errors in this conversion to loan process, the Department has created a process for TEACH grant recipients in this situation to request reconsideration of the conversion from grant to loan. Please visit our blog for the most up to date information on what this will mean for student loan borrowers. Federal Loan Basics Can I get relief? Federal student loan amounts and terms for loans issued in Stafford Loans Stafford loans are for undergraduate, graduate and professional students enrolled at least half-time.

PLUS borrowers with poor credit may still get loans if they can find someone with a better credit history to co-sign. Consolidation Loans Consolidation is similar to refinancing a loan. Applying for a Consolidation Loan You do not have to pay a fee or pay someone to help you get a government consolidation loan. Pros and Cons of Consolidation With a few exceptions, you only get one chance to consolidate your government loans. Joint Consolidation Loans Prior to July 1, , married borrowers could choose to consolidate federal student loans from both spouses or jointly consolidate the loans of either spouse.

Perkins Loans There was also a Perkins loan program for many years. Federal Grants Although this site does not cover federal grants, it is important to know about the main grant programs and find out if you are eligible.

In most cases, you do not have to pay back a Pell grant, but there are some limited exceptions including if: You withdrew early from the program for which the grant was given to you; Your enrollment status changed in a way that reduced your eligibility for your grant for instance, if you switch from full-time enrollment to part-time, your grant amount will be reduced ; or You received outside scholarships or grants that reduced your need for federal student aid.

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How do I get back into repayment if I have defaulted on a federal loan? How do I know if I should consolidate? View all FAQs. Are You Eligible? The Department of Education has announced more borrower defense findings; which applications are getting granted? Quick Help Can I get relief? Resources Complaints. Please Note Please understand that we do not provide legal advice about individual cases. This web site includes links to other resources for those who seek individualized legal advice or other help not offered here.

Some lenders offer private consolidation loans for private education loans as well. Some lenders, like Credible. That interest rate is fixed for life. If the borrower has a mix of loans with different interest rates, the weighted average will be somewhere in between. If you are consolidating loans with different interest rates, the weighted average interest rate will always be in between.

The interest rate may be lower than the highest of your interest rates, but it is also higher than the lowest of your interest rates. More importantly, the amount of interest you pay over the lifetime of the loan will be about the same.

No Cost to Consolidate — Aside from a slight increase in the interest rate on the consolidation loan, there is no cost to consolidate your loans.

There are no fees to consolidate. Under no circumstances pay a fee in advance to get a federal education loan or consolidate your federal education loans. There are no fees to consolidate your loans. Consolidation Timeline Learn what to expect if you decide to consolidate your loans. Back to Consolidation Consolidating Your Loans A Direct Consolidation Loan allows you to combine one or more federal education loans into a single loan.

Take Our Consolidation Quiz! Our Consolidation Quiz can help you determine if consolidation is the right option for you based on your current situation. Take Quiz. Potential Advantages to Consolidation. Here are some of the potential advantages to consolidation: One servicer, one bill, one payment Managing your federal education loan debt with one servicer and one monthly payment may be more convenient than with multiple servicers.

The option to choose your servicer! When completing an electronic application, you will be given the opportunity to select the federal loan servicer you would like to help manage your Direct Consolidation Loan. Potential for lower monthly payments by extending the time you have to repay your loan Fixed interest rate If you have variable rate loans, consolidation will switch your variable rate into a fixed rate.

Potential Disadvantages to Consolidation. Before you submit an application, it is important to understand why you would like to consolidate and the potential drawbacks of consolidation: Longer repayment term If consolidating extends your repayment term, you will pay more interest over a longer period of time. Outstanding interest will capitalize add to your principal balance at the time your loan is consolidated If interest is capitalized, your total outstanding loan balance will increase, which means more interest will accrue on your loans each day.

Weighted average interest rate for the Direct Consolidation Loan is rounded up to the nearest one-eighth of one percent Potential loss of loan incentive program benefits Potential loss of Servicemembers Civil Relief Act SCRA benefit eligibility In order to qualify for the SCRA interest rate benefit, your loan must have been disbursed prior to the start date of your active duty service. Loss of qualifying PSLF payments If you include a Direct Loan in the consolidation, you will lose credit for any of the required PSLF qualifying payments made on that loan prior to the loan being consolidated.

Loss of qualifying Income-Driven Repayment IDR plan payments If you include a Direct Loan in the consolidation, you will lose credit for any of the qualifying payments made under an IDR plan on that loan prior to the loan being consolidated.

Previous Slide Next Slide. Still Have Questions? Review our Consolidation FAQ to review answers to the questions we get most frequently!

Get Started. Back to Consolidation Consolidation Timeline It typically takes 30 business days weeks to originate a Direct Consolidation Loan from the date your application is received. You can either get a repayment timeline based on your loan balance or pick one that ties payments to income. Read the terms before submitting the form online. Continue making student loan payments as usual until your servicer confirms consolidation is complete.

If your loans are in default, consolidation is one of a few methods to get your loans back on track. To consolidate defaulted loans you'll need to make three full, on-time consecutive monthly payments on the defaulted loan and agree to enroll in an income-driven repayment plan.

You can sign up for free on studentloans. If you have a large loan balance and a low income, income-driven repayment is probably your best option for the lowest monthly bill. Find the latest. Consolidation vs. Student loan consolidation. Student loan refinancing.

What does it do? Which loans can I combine? Federal loans only. Can I lower my rates? Can I save money? Will I pay just one monthly bill? Consolidating private student loans. Existing private student loans.