Benefits of Consolidation
We'll explain the main benefits of our direct education loan consolidation program here. Learn some of the best reasons to consider student loan consolidation.
- Lower your monthly payment burden. Direct education loan consolidation can lower your monthly payment burden by as much as 60%. This can reduce the strain on your monthly budget and free up cash for you to devote to investments or high-interest debt.
- Extend your repayment term. Depending on the size of your existing student loans, direct education loan consolidation can give you up to 30 years to repay your loans. Extending the repayment term on your loans can help lower your monthly expenses, though your total interest expense over time will be higher.
- Reduce your interest rates. Federal direct education loan consolidation prohibits lenders from charging borrowers interest rates over 8.25%. For most student loan holders, direct education loan consolidation provides a drastic reduction in interest rates. Even a relatively small rate reduction can save you thousands of dollars in interest expense over time.
- Simplify repayment. Trying to juggle several different student loan payments to many different creditors is difficult. Direct education loan consolidation can help you bundle all of your student loans into one, convenient package. That way, you make one, easy payment to one creditor each month.
- No prepayment penalties. If your financial situation changes or you wish to pay your loan off early for any other reason, direct education loan consolidation allows you to do so at no additional charge. This gives you the flexibility to accelerate your payment schedule if you so choose.
- Take advantage of borrower benefit packages. We offer our direct education loan consolidation customers several opportunities to reduce their interest rates even further. For example, you can enjoy rate reductions for signing up for automatic debit and making a certain number of consecutive payments on time.
