How to Consolidate Your Student Loans From the Government

(a) Work out how much you owe. Your loan companies will start sending you repayment notifications when you graduate or drop below half-time position. You have six months after one of these simple events before you have to begin paying on your loans, so it's vital that you start the consolidation process as fast as possible.

It is possible to consolidate most federal student education loans, including Stafford, Parent IN ADDITION, Supplemental Loans for Students, Kendrick, Federally Insured Student Loans, Nursing Student education loans, Direct Loans, Health Professional Student education loans and Health Education Assistance Financial loans.

You can find your types of loans you hold, their own balances and interest rates by visiting together with your school's financial aid office. In case you aren't able to find out these details from them, you can locate this in the National Student Loan Data Program.

(b) Chose a direct student loan consolidation lender. You can opt to consolidate with the federal government directly by completing the right application on their website or from your school's financial aid office. You may also opt to consolidate your federal financial loans through a private lender. You could find lenders by searching on the internet or asking your school's educational funding office for recommendations. The us government mandates the interest rates for government student loans, so consolidating your loans would be the same no matter what lender a person chose.

(c) Choose a payment plan. Federal student education loans offers four repayment plans to select from. Each payment plan offers various terms, including payment amount and period of repayment.

Choosing the regular repayment plan means you'll pay a fixed quantity per month (minimum $50) for up to ten years. Extended repayment is similar to regular, but you'll have 12 to three decades to repay. An extended repayment strategy means your payments will be smaller, however you'll end up paying more in desire for the long run.


Managed to graduate repayment starts with smaller payments and increase slowly every two years until the loan is paid back (up to 30 years). The graduated payment must be at least $25 and include the amount of interest that has accrued within the loan since the last transaction.

The income-contingent repayment plan can be obtained only for Direct Loan borrowers and it is based on a percentage from the borrower's income (minimum payment of $5 for each month). The payment amount increases yearly because income increases with a maximum repayment amount of 25 years. After more than 20 years, the remaining amount owed within the loan is discharged.

You need to check out each repayment option as well as decide which works best to your requirements. However , you're not secured in to that repayment plan--you can change reimbursement plans annually.

(d) Total the application process. The application process is comparable for every lender. In the software, you'll provide the information on your student education loans, the amounts owed and the present lenders. From there, your , direct student loan consolidation lender will take care of dealing with each of your lenders in order to each loan and transfer your debt.

After the consolidation procedure is complete, you'll sign a promissory notice similar to the ones you signed whenever you originally took out your student education loans. This will outline the repayment quantity, interest rate, and your chosen repayment schedule.

Make payments promptly every month. Choosing a repayment strategy that fits your current budget is vital to making sure that you can keep up with your own student loan payments. In addition , a few lenders give a 1/2-percent interest rate reduction with regard to borrowers who make consistent on-time payments.