The Federal Consolidation Loan Program

The Federal Consolidation Loan combines existing college loans into one manageable student loan, eliminating bills from multiple lenders. A federally guaranteed Consolidation Loan can reduce your monthly payments and provide you with flexible repayment term options. Plus, a Consolidation Loan decreases the likelihood that you will miss a payment, helping you maintain a strong credit rating and better manage your student loan debt. Federal student's loans have a fixed interest rate that is set annually by the federal government.

Federal Consolidation Loans have repayment schedules that are more favorable to borrowers. Repayment can be stretched out for as long as 30 years based on your overall outstanding education loan balances. The longer terms result in significantly lower monthly payments. Please note there are no penalties or fees if you pay the loan off early.

Rates and benefits in the Federal Consolidation Loan Program

Current Consolidation Loan rates go from 6.625% to 8.00%. incentive programs.

Lower your monthly payments
Pay no fees
Qualify with no credit check
Extend your repayment period up to 30 years
Have one convenient monthly student loan payment
Pay your loan early with no penalties
Improve your debt-to-income ratio

Loan Balances

Loan balances are in between $7,500 - $49,999: You can receive a 1% total rate reduction. Reduce your rate 0.75% by making the first 12 scheduled payments on-time and 0.25% by making your payments electronically through auto debit from your bank account.

Loan balances over $50,000: You can receive a 1.25% total rate reduction plus a 1% rebate. Reduce your rate by 1% after you make 48 consecutive, on-time payments and by 0.25% by making your payments electronically through auto debit from your bank account. To receive the 1% rebate, you must make your first 36 scheduled payments on
time.

If you have any doubts there are Consolidation Loan Specialists to help assist you also.