Student Loans and Scholarships

Should I Consolidate?

By combining your federally funded student loans into a single new loan, a student loan consolidation reduces the number of payments you have to worry about each month. Combined with longer repayment plans, your monthly payment may also drop significantly.

The following student loans are eligible for student loan consolidation:

• Federal Direct Stafford Loans, formerly known as Federal Stafford, Stafford or Guaranteed Student Loans (GSL)
• Federally Insured Student Loans (FISL)
• Federal Perkins Loans, formerly known as Perkins or National Direct Student Loans (NDSL)
• Supplemental Loans for Students (SLS)
• Auxiliary Loans to Assist Students (ALAS)
• PHEAA Non-subsidized GSL's
• Primary Care Loans, formerly known as Health Professions Student Loans (HPSL)

Advantages:

• Smaller payments
• Consolidation agencies often offer special rate discounts for making timely payments
• Fewer bills to handle
• Some consolidation agencies accept both, federal and non-federal student loans

Disadvantages:

• Majority of deferment/cancellation provisions forfeited
• Longer repayment period (up to a 30 year repayment schedule)

Additional information concerning student loan consolidations and the application process is provided at the Federal Direct Consolidation Loans Information Center (1-800-557-7392).

This information is available in alternative format upon request