What are the benefits of consolidation?
There are a number of potential benefits to consolidating your student loans:
- Simplify your repayment process by making only one payment every month instead of making separate payments for each loan. This single payment is likely to be a lower amount than the combination of minimum payments required for each separate loan.
- Secure a new interest rate on your consolidation loan that could possibly be lower than what you are currently paying.
- Gain more flexibility in repayment. Most of the DIrect Loan repayment options are available to Direct Consolidation Loan borrowers.
- Gain the deferment, forbearance and cancellation possibilities available to Direct Loan borrowers. (see the Student Loan Deferment and Cancellation Summaries page)
- Remove the default status from a defaulted student loan through consolidation and restore your eligibility for other types of federal student aid.
Learn more about loan consolidation including how to complete the online application at the Federal Direct Consolidation Loan Information Center.
