Learn how to reduce your monthly student loan payments Because federal student loans debt consolidation is a free, government-sponsored program, there is no cost associated with it. You can consolidate federal loans for free.
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Loan Eligibility, Rates, Fees, & Terms

Here you'll find all the technical information about student loans debt consolidation that's important to know prior to applying. We'll explain what loans are eligible and give you the basics on rates, fees, and terms.

Eligible Loans

If you have private or alternative student loans, all of your loans should be eligible for private student loans debt consolidation, including private parent student loans. For federal loan holders, the following loans are eligible for student loans debt consolidation:

  • Subsidized & unsubsidized Stafford loans
  • Federal direct loans
  • Supplemental Loans for Students (SLS)
  • Federal Perkins Loans>
  • Parent Loans for Undergraduate Students (PLUS)
  • Grad PLUS loans
  • Federally Insured Student Loans (FISL)
  • Health Professions Student Loans (HPSL)
  • Health Education Assistance Loans (HEAL)
  • Nursing Student Loans (NSL)

Student Loans Debt Consolidation Rates

With private student loans debt consolidation, your rates will be determined much like those of any other private loan. They will be based on market conditions, your creditworthiness, and the terms of your loan. For federal student loans debt consolidation, your rates will be based on a weighted average of the interest rates of the loans you're consolidating, before any lender discounts are applied. This weighted average will then be rounded up to the nearest eighth of a percent, with a federally-imposed maximum of 8.25%. You will enjoy this fixed rate for the life of your consolidation loan.

Student Loans Debt Consolidation Fees

Because federal student loans debt consolidation is a free, government-sponsored program, there is no cost associated with it. You can consolidate federal loans for free. With private student loans debt consolidation, on the other hand, you will likely have to pay application and origination fees, as you would with any other private loan.

Student Loans Debt Consolidation Terms

You can extend your repayment period to up to 30 years, depending on the balance of your existing student loans. Remember that extending your repayment period will increase your total interest cost because you are making smaller payments on the principal over an extended period of time. However, there are no prepayment penalties associated with student loans debt consolidation, so you can always choose to accelerate your payments. If you have any questions, please check out our "FAQ" page.