Consolidating student loans from
The electronic application on Student consists of the following five steps: 1.
Please note: Only the US Department of Education can provide determination of eligibility and exact payment amount for any government forgiveness or repayment program listed on this website.
[Show example, with interest rates.] If you’re not sure about the differences between unsubsidized and subsidized loans, we cover this in another video.
[Flash intro video] Now as you can see, keeping track of these loans might get complicated—especially if you’re making payments to different loan servicers.
That is a sizeable, unwelcome gift to take home from school and it’s important to know how to minimize the damage.
The good news is that federal loans carry a six-month grace period so there is time to develop a plan for dealing with them.
Currently, the interest rate is fixed for the life of the loan.
For more information of the specific loan terms, please visit the Loan Consolidation home page.
Once you sign in to Student using your personal identifiers and Federal Student Aid PIN, you will be able to electronically complete the Federal Direct Consolidation Loan Application and Promissory Note.
It can vary from 10 to 30 years, but in this case it’s going to be 25 years. That’s a lot less than the 0 a month you would have spent on a standard 10-year repayment plan.
A PLUS loan made to the parent of a dependent student cannot be transferred to the student through consolidation.
Entering these numbers into the loan calculator at gov—on a standard 10-year repayment plan, you’re going to be paying a little over 0 a month.
Over 10 years, you’ll pay about ,000 in interest on your original principal of ,000. Under your new loan terms, your loans will be consolidated into one ,000 loan—and you’ll have one new fixed interest rate, which is determined by taking the weighted average of the interest rates on your previous loans, and rounding up to the nearest one-eighth of one percent. Now, entering your loan information into a loan consolidation calculator, you’ll find that consolidating your loans gives you a new repayment period, which is figured based on the amount you owe – the more you owe, the longer this repayment period will be.