Loan ConsolidationEducation loans are an excellent source for students and parents paying for the costs of college. Borrowing money to finance college will have long-term implications. The amount of debt incurred must be properly managed and controlled and kept to a minimum. Remember, prompt payments create a good credit rating for you! When to consider loan consolidation? If after exploring forbearance, deferment and repayment options, your student loan payments are unmanageable, this is when you may wish to consider consolidation. The Loan Consolidation program allows you to combine eligible loans, plus extend the repayment over a longer period. A defaulted loan may be included in a loan consolidation if the borrower has made satisfactory arrangements with the holder. The advantages and disadvantages should be thoroughly discussed with your lender. How do you qualify? To qualify for a loan consolidation, you must be in a grace period or in a repayment status. Outstanding student loan debt from any of the following programs may qualify for loan consolidation:
Federal Insured Student Loan (FISL)
Federal Subsidized Stafford Student Loan
Federal Unsubsidized Stafford Student Loan
Federal Nonsubsidized Stafford Loan
Federal Supplemental Loan for Students (SLS)
Federal Perkins Loan (formerly NDSL)
Federal Consolidation Loan
Federal Parent Loan for Undergraduate Students (PLUS)*
Federal GRAD PLUS (PLUS PRO) (loan for professional/graduate students)
Ford Federal Direct Subsidized Stafford Student Loan
Ford Federal Direct Unsubsidized Stafford Student Loan
Ford Federal Direct Parent Loan for Undergraduate Students (PLUS)*
Ford Federal Direct GRAD PLUS (loan for professional/graduate students)
Health Education Assistance Loan (HEAL)
Health Professionals Student Loan (HPSL)
Loans for Disadvantaged Students (LDS)
Nursing Student Loan (NSL)
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