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.