Learn how to reduce your monthly student loan payments Student loans debt consolidation involves paying off your existing student loans with a consolidation loan.
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Do you have at least $15,000 in student loan debt?
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How Student Loans Debt Consolidation Works

Before you apply for student loans debt consolidation, learn how it works. We'll explain what it is, what it does, and who the best candidates for it are.

About Student Loans Debt Consolidation

Student loans debt consolidation involves paying off your existing student loans with a consolidation loan. Federal student loans debt consolidation is a free, government-sponsored program that is distributed through private lenders. Federal student loans debt consolidation allows you to lock in a low, fixed interest rate for the life of the loan. Federal loan consolidation does not require a credit check, so virtually anyone with federal student loans who has not already consolidated can qualify. To determine your new interest rate when you consolidate, your lender will take a weighted average of the interest rates of your existing loans, and then round up to the nearest eighth of a percent. If you have private student loans, you will apply for private student loans debt consolidation, which is much like any other loan you would receive from a private lender. These loans tend to have higher, variable interest rates and other fees associated with them, but they can still considerably reduce your payment burden. For more information, please visit our loan eligibility, rates, fees, and terms page.

Who Should Consider Student Loans Debt Consolidation

If you are trying to decide if student loans debt consolidation is right for you, see if you fall into any of the following categories:

  • You have at least $5,000 in student loans
  • You have federal or private student loans (parents PLUS & grad PLUS loans also eligible)
  • You are in a grace, repayment, forbearance, or deferment period
  • You are no longer enrolled in school at least half-time (have graduated or dropped out)
  • You have not consolidated your loans previously
  • You are struggling to make your monthly payments
  • You want the convenience of one payment instead of many
  • Your student loans have high or variable interest rates you would like to reduce
  • You would like to extend your repayment term