As part of the process, you’ll need to provide details about your existing federal student loans, and choose a federal loan servicer and repayment plan for your new consolidation loan.You have to complete the application in a single session, so do your research before you start. You can consolidate all your federal loans or just some of them.Before you consolidate, consider the following pros and cons: Note: Just remember, you must continue making payments after submitting your application until you receive notice from your servicer that underlying loans have been paid off.
One key component of the FFEL program is the Consolidation Loan.
What this does, is it allows you to bundle all of your monthly loan payments into just one payment.
To consolidate, you must be in your grace period or repaying your loans.
Loan Consolidation Calculator The interest rate is a fixed, weighted average of all the loans you consolidate, rounded to the next highest 1/8%, up to 8.25%.
Federal student loan consolidation basics How to consolidate federal student loans Benefits of federal consolidation Drawbacks of federal consolidation Private student loan consolidation (student loan refinancing) When you consolidate federal loans, the government pays them off and replaces them with a direct consolidation loan.