Categories: Loans

Education Loan Consolidation – How to Apply for Consolidation Loans

Education Loan Consolidation

Education Loan Consolidation – Consolidation Loans are available to most borrowers of Federal education loans. See below for all you need to know to apply;

Loan Consolidation? If you have multiple student loans you may be able to combine them into one loan with a fixed interest rate based on the average of the interest rates on the loans being consolidated.

Program Requirements

Generally, you are eligible to consolidate after you graduate, leave school, or drop below half-time enrollment. Most Federal student loans are eligible for consolidation, including:

Direct Subsidized Loans
Direct Unsubsidized Loans
Subsidized Federal Stafford Loans
Unsubsidized Federal Stafford Loans
Direct PLUS Loans
PLUS loans from the Federal Family Education Loan (FFEL) Program
Supplemental Loans for Students (SLS)
Federal Perkins Loans
Federal Nursing Loans
Health Education Assistance Loans
Some existing consolidation loans

Application Process

You apply for a Direct Consolidation Loan through StudentAid.gov.

Once you sign in to Studentaid.gov using your personal identifiers and Federal Student Aid PIN, you will be able to electronically complete the Federal Direct Consolidation Loan Application and Promissory Note. The electronic application on StudentLoans.gov consists of the following five steps:

1. Choose Loans & Servicer
2. Repayment Plan Selection
3. Terms & Conditions
4. Borrower & Reference Information
5. Review & Sign

Loan Terms

Maximum Loan Amount: None

Interest Rate: Weighted average interest rate on the loans being consolidated, rounded to the nearest one-eighth of 1 percent, not to exceed 8.25 percent. For more information of the specific loan terms, please visit the Loan Consolidation home page.

Maximum Loan Length: 10-30 years

Frequency of Payments: Varies

Prepayment penalties: None

Fees: None