Consolidation

If you have outstanding student loan debt, you may be eligible to consolidate all your loans.

Loans eligible for consolidation include:

  • Federal Subsidized and Unsubsidized Stafford Loans
  • Federal Perkins/NDSL Loans
  • Health Professional Student Loans
  • Federal Parent Loan for Undergraduate Students

Advantages of Consolidation

You will have a lower monthly payment. By extending the repayment period, you can reduce your monthly payment. Lowering your monthly payments to fit your budget may help avoid late payments. You will have one monthly payment to one lender.

If you have loans with more than one guarantor or bank, Loan Consolidation allows you to make one monthly payment instead of several minimum payments to different banks or lenders. The interest rate is the weighted average of the loans consolidated rounded to the nearest whole percent.

Disadvantages of Consolidation

You will pay a higher total interest amount. By extending the repayment term of the loan, you will pay more interest over the life of your loan and you will be making payments for a longer period of time.

You may be paying the loan for up to 30 years depending on the total indebtedness of your loans. However, if at some point you are able to, you may repay the loan early with no penalties.

It is important to remember that once the Consolidation Loan is complete, it cannot be reversed. The reason for this is that the underlying loans have been paid off and no longer exist.

For more information regarding the consolidation process, please contact one of the following agencies:

U.S. Department of Education
 William D. Ford Loan Program
Consolidation Department
P.O. Box 1723
Montgomery, AL 36102-1723
Phone: 800.557.7391

Education Quest Foundation 
Rockbrook Village
11031 Elm Street
Omaha, NE 68144
Phone: 402.391.4033