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Federal Student Loan Consolidation*
What is a
Federal Consolidation
Loan?
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A Federal Consolidation Loan makes repayment easier and more convenient by bundling (consolidating) all your eligible student loans into a single new loan with one lender, one monthly payment, and one low, fixed rate.
By consolidating your student loans, you could get up to 20 more years to repay, and you could cut your monthly payments nearly in half.
Use our consolidation loan calculator to see how much you can save. |
Rates
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Your consolidated rate will be based on the weighted average of the interest rates on the loans you’re consolidating. In a weighted average, the interest rates on your larger loans will affect your consolidated rate more than the interest rates on your smaller loans.
The weighted average is rounded up to the nearest 0.125%, with a maximum rate of 8.25%. This will be the fixed rate on your Federal Consolidation Loan.
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Benefits
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- No application or processing fees
- No collateral or credit checks
- No co-signer required
- Fixed, low interest rates
- One convenient monthly payment
- Flexible repayment options
- No prepayment penalties
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Repayment
Terms
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Your new repayment term on your student consolidation loan will depend on the total dollar amount of your outstanding student loan debt. You could get up to 30 years to repay.
Education Debt |
Repayment Term |
$20,000 – $39,999 |
20 years |
$40,000 – $59,999 |
25 years |
$60,000 + |
30 years |
You can also choose from income-sensitive, graduated and extended repayment plans that could help make repayment more affordable.
All Federal Consolidation Loans are eligible for federal deferment and forbearance benefits.
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Apply for a NextStudent Federal Consolidation Loan.
* Please be aware that due to current conditions in the student loan market in particular and in the financial sector in general, NextStudent is not currently able to accept any new PLUS, Grad PLUS, Stafford, or Federal Consolidation Loan applications.
On October 1, 2007, legislation went into effect that cut $21 billion in subsidies to FFELP lenders like NextStudent. We have been searching, and continue to search, for avenues that would allow us to keep offering FFELP loans. But at this point, until market and regulatory conditions change, we find ourselves forced to suspend our federal education loan programs.
We value your business, and we want to make sure you’re able to get the money you need to pay for school. We encourage you to take advantage of college scholarships and your available federal financing options. But if you’re still in need of a parent or student loan, please give us a call, and we’ll do what we can to help.
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