student loan consolidationStudent Loan Consolidation Information


The Department of Education has guidelines that help to determine the applicable loans that qualify in consolidation of your Federal Student Loans. Normally, your payment is approximately 50% less than your current minimum payment and your interest rate decreases between 1-6%. When your eligibility is determined and approximate payment is established, the pertinent information needed for the student loan consolidation and all agreements and forms are sent to you for your signature. Your file is then reviewed once again prior to being sent to the Department of Education for their approval. The Department of Education, upon approval of the student loan consolidation, sends you a new promissory note to sign and return. That’s all there is to it.

Your Lender is the U.S. Department of Education

The U.S. Department of Education is the only lender for all loans in a Direct Consolidation Loan. Additionally, there are various repayment plans with several term lengths and may include an Income Contingent Repayment and an Income-Based Repayment Plan. You can switch repayment plans at anytime. However, if you select an Income Based Repayment Plan, you will only be able to select a standard repayment plan.

No Minimum or Maximum Amounts

There is no minimum amount of student debt required to qualify for student loan consolidation with a Direct Consolidation Loan.

You Cannot Consolidate Your Student Loans If:

  • Your current status says you are in school or in judgment
  • Your current loans are private

Do you have a pending Garnishment because of unpaid student loans?

There is an additional program for default status. Your student debt can go through a rehabilitation process that involves mediating directly with the lender to bring the payments to a current status over a nine month period. Any record of delinquency will then be removed from your credit report and your debt will become eligible for consolidation.


Subsidized Loans

  • Subsidized Federal Stafford
  • Direct Subsidized
  • Subsidized Federal Consolidation
  • Direct Subsidized Consolidation
  • Federal Insured Student (GSL)
  • Guaranteed Student (GSL)
  • Federal Perkins – (All Federal Perkins Loans are subsidized)

Unsubsidized Loans

  • Unsubsidized and Nonsubsidized Federal Stafford
  • Direct Unsubsidized Loans, including Direct Unsubsidized (TEACH)(converted from TEACH Grants)
  • Unsubsidized Federal Consolidation
  • Direct Unsubsidized Consolidation
  • Federal PLUS (for parents or for graduate and professional students)
  • Direct PLUS (for parents or for graduate and professional students)
  • Direct PLUS Consolidation
  • National Direct Student (NDSL)
  • National Defense Student (NDSL)
  • Federal Supplemental for Students (SLS)
  • Parent Loans for Undergraduate Students (PLUS)
  • Auxiliary Loans to Assist Students (ALAS)
  • Health Professions Student (HPSL)
  • Health Education Assistance (HEAL)
  • Nursing Student (NSL)
  • Loans for Disadvantage Students (LDS)

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