What is a

A Federal Consolidation Loan combines several existing federal student loans into one new loan. You can lock in a single fixed interest rate and enjoy the convenience of one monthly payment.

Why should I consolidate my college loans?

    *You do not want your interest rate to change every year. Remember, School Consolidation loans are fixed interest rates; you will know what your interest rate is until the loan is paid in full.
    *You are struggling to make ends meet. Depending on your loan balance, the amount of time given to pay back your loans may increase after you consolidate, which in turn lowers your monthly payment.
    *You only want to make one monthly student loan payment. If you have more than one lender, you are making at least two, possibly more, monthly payments for your student loans. By consolidating all of your eligible loans with one lender, only one payment to one lender is required each month.

How can I benefit from my school loans consolidation?
Depending on your loan balance, you may have a longer term to pay off your School Consolidation loan, which could decrease your monthly payment to a more manageable amount. Keep in mind, the longer it takes to repay your loans, the total interest costs will increase.

What are Federal Student Loans and Federal Student Loan Consolidation?

Federal Student Loans
These loans supply financial help for those who are a student enrolled at a school that participates in federal aid programs. When referring to a "school," this means a two-year or four-year public or private college, university, or trade school. These loans are offered by private organizations under accordance from the US Department of Education through the Federal Family Education Loan Program (FFELP) and the Federal Direct Student Loan Program (FDLP).
Federal student loans generally cover school expenses, including tuition and fees, room and board, books and school supplies, as well as any transportation. Loans can also help pay for technology needs (i.e., a computer) and for necessary dependent care.

Federal Student Loan Consolidation
If a student has a series of loans, through the Stafford, PLUS or Perkins programs, they have the option to consolidate these federal student loans into one single debt. This results in reduced monthly repayments and a longer term for the loan, at a fixed interest rate. The term of the loan can be between 10-30 years. Although the monthly repayments are lower, the total amount paid over the term of the loan is higher than would be paid with other loans. The calculated fixed interest rate is based on the average rate of the loans being consolidated. These rates are weighted, based on the amounts borrowed.

What loans can I consolidate into the Federal Student Load Consolidation Program?
There are currently about 15 different types of federal student loans that can be included in a

    *FFEL Consolidation Loans
    *PLUS Loans
    *Stafford Loans (subsidized and unsubsidized)
    *SLS (Supplemental Loans)
    *Direct Stafford Loans (subsidized and unsubsidized)
    *Direct PLUS Loans
    *Direct Consolidation Loans
    *Direct PLUS Consolidation Loans
    *FISL (Federally Insured Loans)
    *All Perkins Loan Types, including:
      National Defense Loans
      Perkins Expanded Lending
      Income Contingent
      NDSL
      Federal Perkins Loans (directly from your school)

What are the benefits of Federal Student Load Consolidation?

    *Reduces your monthly payment up to 60%
    *Locks in your interest rates- protects yourself from future increases.

Federal student load consolidation allows borrowers to lock in today's low rates and combine several federal loans in to one payment. Your monthly payment will be lower because you can extend the term of your loan repayment. With our Federal Student Load consolidation program you can reduce your interest rate by an additional 1.5% with our incentive plan.

I have specific loans that I do not want to include in the school loans consolidation. Can I leave some loans out?
Yes. You can specify any loan to be excluded from your consolidation as long as the remaining balance to be consolidated is more than $10,000. This is a very common practice, especially for those people who are eligible to have their Perkins loans forgiven.