Loan Consolidation

The William D. Ford Federal Direct Loan Program offers loan consolidation as a type of voluntary payment arrangement for defaulted federal student loans.  If your specific loans are eligible, federal law allows us to offer you the opportunity to consolidate your existing student loans into a new Direct Consolidation Loan.  The underlying loans consolidated into a Direct Consolidation Loan are discharged (i.e., paid in full by the proceeds of the new loan) when the Direct Consolidation Loan is originated. 

Things You Need to Know About Loan Consolidation.

  • Any variable rate loans will be converted to a fixed rate.
  • With the option for an extended repayment period, you may be able to lower your monthly payments by spreading out the repayment over a longer period of time.
  • While your monthly payment may be less, you will pay more in interest and as a result, pay more over the term of the loan.
  • You may be required to make at least three consecutive, voluntary, and on-time payments prior to consolidation or agree to repay the Direct Consolidation Loan under an income-contingent repayment plan or an income-based repayment plan.
  • You cannot have an outstanding judgment against the underlying loan. If an outstanding judgment exists, you must make arrangements with your loan holder to have the judgment released before you can consolidate your loans.
  • You have at least one of the following types of loans that have not been previously consolidated:
    • 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

Give us a call. We can help you determine if you qualify for Loan Consolidation and if it is the right program for you.