What is a consolidation loan?
A consolidation loan combines several student loans (parent or student) from different lenders into one loan from a single lender. Consolidation loans are available for most federal loans, including FFELP (Stafford, PLUS and SLS), FISL, Perkins, Health Professional Student Loans, NSL, HEAL, Guaranteed Student Loans and Direct Loans. Some lenders offer private consolidation loans for private education loans as well. Generally, private loans cannot be consolidated with federal student loans.
Is it a good idea for me to consolidate?
There are pros and cons to consolidating student loans. It may serve as a great way to simplify loan repayment by centralizing your loans to one bill and can lower payments by giving you up to 30 years to repay loans. However, a consolidation could also bring about more payments, more interest, and a potential loss of borrower benefits from your original loan. Once your loans are consolidated they cannot be removed from consolidation.
Please consider the matter carefully and for more information visit the following website:
Where can I get a consolidation loan?
If you are interested in consolidating your Federal Student loans you may complete an application at: www.studentloans.gov.
If you are interested in consolidating Alternative/Private Student loans please visit ELM Select. Choose the private consolidation program type.