Consolidation Services
We offer two direct education loan consolidation services, one for federal loan holders and one for private loan holders. Learn more about each service here.
Federal Direct Education Loan Consolidation
If you have federal student loans, you can qualify for free federal direct education loan consolidation. To qualify, you must be in a repayment or grace period on your loans, have never previously consolidated, and no longer be enrolled in school more than half time. Federal direct education loan consolidation is a free program sponsored by the government, though your actual consolidation loan is still issued by a private lender. The interest rate of your new loan is determined by taking a weighted average of the interest rates of your existing loans and rounding it to the nearest eighth of a percent. By law, your consolidation loan's interest rate cannot exceed 8.25%. Almost all federal loans are eligible for federal direct education loan consolidation, including the following:
- Federal Direct Loans
- Subsidized and unsubsidized Stafford loans
- PLUS loans and Grad PLUS loans
- Supplemental Loans for Students
- Perkins Loans
- Health Profession Student Loans & Health Education Assistance Loans
- Nursing Student Loans
Private Direct Education Loan Consolidation
Any loans you have that do not qualify for federal consolidation can still qualify for private direct education loan consolidation. In contrast to federal consolidation, private student loan consolidation requires a credit check and, in some cases, a co-signer. Private direct education loan consolidation usually offers an interest rate that is initially fixed, followed by rates that fluctuate with market conditions. Private consolidation loans are much like any other private loan, in that they typically come with certain origination and processing fees. Here are some facts about our private direct education loan consolidation program:
- No prepayment penalties
- Release your co-signer from the agreement after you make so many payments on time
- No collateral required
- Very low introductory rates
- One, easy monthly payment
- Extend your repayment term to up to 30 years
If you have any questions, please visit our FAQ page.
