Typically, consolidating your Federal loans first will help prepare you for the private consolidation application. Consolidating your Federal loans will streamline your loans and lower your payment. This might help improve your credit score and debt-to-income ratio. The next step would be to consolidate your private student loans. Learn more about our Private Consolidation Loan.
Loan Designed for: Parents or students with Federal student loans. You may not combine student, parent, or spousal loans together.
Interest Rate: The Federal consolidation loan has a fixed interest rate. In accordance with Federal regulations, the interest rate on your consolidation loan will be calculated using the weighted average of your current loans, rounded up to the nearest 1/8 th of 1% never to exceed 8.25%.
Repayment Term: The repayment of a Federal consolidation loan begins within sixty days after loan(s) are consolidated. There is no grace period; borrowers in the original six or nine month grace period forfeit the remainder of said grace period when a consolidation disbursement is made.