Debt Consolidation Education Loan
Consolidation Loans unite several student or parent loans into one bigger loan from a single lender, which is then used to compensate the balances on the other loans. It is very similar to refinancing a credit. Consolidation loans are available for most federal loans including FFELP (Stafford, PLUS and SLS), FISL, Perkins, Health Professional Student Loans, NSL, HEAL, Guaranteed Student Loans and Direct loans. Both candidate and parent borrowers can consolidate their education loans.
The interest rate on a consolidation loan is the encumbered average of the interest rates on the loans being consolidated, rounded up to the nearby 1/8 of a percent and capped at 8.25%. Aside from a slight raise in the interest rate on the consolidation loan, there is no fee to consolidate your loans. There are no charges to consolidate.