The most simple just combines payments. This does not change the total monthly payment or total cost of the loan. It adds convenience and reduces chances of forgetting a payment. .

The other consolidation options are more complicated. The process involves taking single separate loan to repay your existing ones. There are several potential advantages with this scenario.

• It is possible to sometimes find a loan which gives you a lower overall interest rate. This would end up reducing monthly as well as total loan repayment.
• Some loans are not eligible by themselves for extended repayment options. By paying off these loans through consolidation you may be eligible to extend your repayment options.
• You may gain options in deferment not available on your current loans.
• You can lock in the new rate, removing the potential yearly changes in rate with the economy. This is particularly relevant now with the lowest interest rates in over 20 years.

Evaluating consolidation.

Below are some considerations in the consolidation process:

• Find out if your loans can be consolidated. Loans that can include:
  • GSL
  • Federal Supplemental Loans
  • Federal Subsidized Stafford
  • Federal Plus
  • Federal Perkins (previously National Direct Student Loans)
  • Health Professional Loans
  • Loans for Disadvantaged Students
  • Health Education Assistance Loans.
• Private loans and institutional loans may not be consolidated together or with federal loans
• Find out if you have new options for repayment
• Find out what your new monthly payments are
• Compare the total cost of the consolidated loan to the total costs of the individual loans
• Find out if there are new limitations or options in grace, deferment and forbearance
• Look into hidden costs

See consolidation resources for your loans

Money Saving Options