Federal Student Loan Consolidation

So you've heard about the federal student loan consolidation option and want to know more? Here are some answers to your questions. Remember that you can only consolidate federal student loans with federal student loans.

Why do it:

• You want a lower payment on your federal student loans 
• You want all your federal student loans to be in one place (you must have taken these federal loans out at different banks to want this)
• You have a variable interest rate that you want to fix

How does the interest work:

• The average weighted interest of your loans is taken, therefore, you do not gain an advantage consolidating student loans into the same term that you currently have as the payment will be the same

How is the monthly payment lowered with consolidation:

• The term of your loan "resets," you may pick a 20 year repayment or a repayment based on your income, for example

How can I know what my payment will be before applying:

• Use this online calculator

Are there fees:

• No

Where should I go to apply for a consolidation:

• Direct Consolidation Loan Website