Collins English Dictionary - Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co. allows you to consolidate (combine) multiple federal education loans into one loan. However, if you increase the length of your repayment period, you'll also make more payments and pay more in interest.
Loan consolidation can greatly simplify loan repayment by centralizing your loans to one bill and can lower monthly payments by giving you up to 30 years to repay your loans.
Carefully consider whether loan consolidation is the best option for you.
If you are contacted by someone offering to consolidate your loans for a fee, you are not dealing with one of the U. Department of Education’s (ED's) consolidation servicers. To apply for a Direct Consolidation Loan, you must follow the process outlined below.
There is no application fee to consolidate your federal education loans into a Direct Consolidation Loan.
You also should consider the impact of losing any borrower benefits offered with the original loans.
Borrower benefits from your original loan, which may include interest rate discounts, benefits, can significantly reduce the cost of repaying your loans. If you want to lower your monthly payment amount but are concerned about the impact of loan consolidation, you can consider reevaluating your and income situation.
You can also consider deferment or forbearance as options for short-term payment relief needs.
Once your loans are combined into a Direct Consolidation Loan, they cannot be removed.
The loans that were consolidated are paid off and no longer exist.
Top cannot be transferred to the student through consolidation.
Therefore, a student who is applying for loan consolidation cannot include the PLUS loan the parent took out for the dependent student’s education.