Federal loan consolidation can include Federal Stafford Loan consolidation, PLUS Loan consolidation, Direct Loan consolidation as well as Perkins Loans, HEAL Loans and all Federal FFELP and Direct Loans taken to pay for your education. Private student loan consolidation is different - You will lose your federal loan benefits if you consolidate your federal loans into a private loan consolidation.
Managing Existing Student Loan Debt Obligations:
- If you're having trouble meeting your student loan payments, contact your loan servicer. You may qualify for a deferment, forbearance, or repayment alternative that is more affordable.
- Consolidation can help by extending your loan's repayment term beyond the standard ten years. While this will increase the total interest charges, the monthly payments will become more manageable.
- Watch your expenses! Just as you need to be cautious when you're in school, you need to be aware of your expenses after you leave school.
- Limit credit card usage to absolute necessities. Remember you'll pay more for every charged item because of the credit card's finance charges.
- If you must have student credit cards, shop around for low interest rates or call existing credit card providers and ask them for a lower rate.
- If you are delinquent or in default, visit our Student Loan Default Assistance page for more help.