Consolidation

Consolidation makes your loans more manageable by combining them into one loan with one interest rate. After consolidation, you make one payment each month instead of several different ones. For added simplicity, you also can select a fixed monthly payment.

Note that while consolidation can be helpful, it has some downsides. Consider this choice carefully, because once you consolidate, you can’t reverse the decision. The most important consideration is that you may end up paying significantly more, over time, if you consolidate and choose the full 30-year repayment term. You also could lose some of the benefits of your original repayment plans, such as principal rebates, interest rate discounts, and cancellation benefits.

Be sure to weigh the pros and cons of consolidation before combining your loans. You can get started by reviewing the Loan Consolidation information on the Federal Student Aid website Links to an external site..

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