Federal Consolidation Loans

Financial Federal Consolidation Loans
Lighten Your Loan Payment

Have Federal & Private Student loans to Consolidate?

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.

Repayment Schedule

Consolidated Amount

Years to Repay 

$7,500 - $9,999

12 Years

$10,000 - $19,999

15 Years

$20,000 - $39,999

20 Years

$40,000 - $59,999

25 years

Over $60,000

30 Years

Any fees? No. Fees cannot be charged for consolidating Federal student loan(s).

Any Drawbacks to Consolidation? Yes. By extending your loan term you will pay more interest. Additionally, by consolidating you may disqualify yourself from loan forgiveness programs like the Public Loan Forgiveness Program.

Having trouble locating all of your Student Loans? You can access all of your Federal loan history information at www.nslds.ed.gov.

How do you secure a Federal consolidation loan? To find out more about consolidation or apply for a consolidation loan through the Federal Direct Lending program, visit https://studentloans.gov/myDirectLoan/index.action

How do you Save on a Federal Consolidation Loan? By setting up automatic monthly payments with the Federal Direct Lending Program you can reduce your interest rate by -.25%.

Federal Loan Forgiveness, Cancellation, and Repayment Options: Depending on your career choices or type of employer, you may be eligible to participate in the Federal Student Loan Forgiveness Programs. By fulfilling certain criteria the government will "forgive" some of your Federal Stafford, Perkins, Health Professional , and/or PLUS loan debt. There are several different programs to help with loan forgiveness, cancellation or payment reduction. Read about them at the links below and learn how you may be able to take advantage of these Programs.

Loans and the AAA Student Lending Program offered through AAA Northeast Bank. Rates and terms are subject to change or termination without notice. All loans are subject to satisfactory credit approval and Federal government eligibility requirements. Other loans and terms available.

You may qualify for Federal student loans. We encourage students to exhaust Federal student loan options before applying for a private student loan, as Federal loans are often less expensive and offer the widest variety of repayment options.