:: Loan Consolidation ::
Consolidation allows you to combine all of your federal student loans into a single, more manageable loan with one monthly payment. Consolidating your loan extends your repayment period up to 30 years depending on the loan amount. You may also be able to secure a lower fixed interest rate for your loan(s).
Loan consolidation isn’t the best option for every borrower. Learn more on the U.S. Department of Education website (external link) or by calling 800.557.7392 (toll-free).
- Who can consolidate?
- What loans can be consolidated?
- Can I consolidate while I’m still in school?
- Is consolidation right for me?
- How much will my payment be?
Who can consolidate?
- Borrowers who are in their grace period or already in repayment on each loan chosen for consolidation.
- Borrowers who have more than one loan to consolidate.
- Borrowers who are delinquent or in default may be eligible to consolidate. If loans are in default, a borrower must be in repayment on the defaulted loans or agree to repay the new consolidation loan under the income-contingent or income-based repayment plan. For more information, call OCAP's Recoveries department at 800.522.8022 (toll-free) or 405.234.4375.
What loans can be consolidated?
- Federal Stafford (subsidized and unsubsidized)
- Federal PLUS
- Federal Supplemental Loans for Students (SLS)
- Federal Consolidation
- Federal Direct Student Loans (FDSL)
- Federal Insured Student Loans (FISL)
- Federal Perkins Loans
- Health Professions Student Loans (HPSL), including Loans for Disadvantaged Students (LDS)
- Federal Nursing Student Loans (NSL)
- Health Education Assistance Loans (HEAL)
Can I consolidate while I’m still in school?
No. Borrowers currently enrolled aren't eligible for loan consolidation.
Is consolidation right for me?
Consider the following when making consolidation decisions:
- How much will the total interest cost increase based on smaller installments over a longer payment period.
- Will consolidation affect the terms of my current repayment agreement? Consolidation may negatively impact your deferment options and may negate any borrower benefits your current lender provides, such as reduction in interest rates for on-time monthly payments.
- Will consolidation affect my loan options? It depends. Consolidation provides the convenience of making one monthly payment; however, if you consolidate a Perkins loan, you forfeit any loan forgiveness benefits and become responsible for interest that accrues during deferment.
How much will my payment be?
You can calculate your new payment using Mapping Your Future's loan consolidation calculator. (external link)
icon indicates a link to an external website