Loan Consolidation

PERKINS

You have the opportunity to consolidate your Federal Stafford Loans and your Federal Perkins Loan.  Prior to consolidation, please research your cancellation options with the Perkins loan.  You may be able to cancel a portion of the loan’s principal balance.  You can find these options at the first website listed below.  If you believe that this option is not available to you, adding your Perkins loan to your Stafford loans may be the next best step.  To start the consolidation process, see the second link below.  If you are unsure of exact loan balances, interest rates, and repayment status, use the National Student Loan Database System (NSLDS) website.  This website houses information on all federal loans in your name.  At times, this site can be up to three months behind on information listed.

Cancellation Options:
http://www.ecsi.net/bwr/forms/defcanc.html

Consolidation:
http://www.loanconsolidation.ed.gov/

NSLDS:
http://www.nslds.ed.gov/nslds_SA/

 

Facts about consolidation:

  • All of your loans will be in one convenient location with only one bill per month for all loans.  You would be able to access your consolidation loan information from one website to see how your payments are itemized.
  • Your loans’ interest rates will be averaged to the nearest 1/8th of a percent per loan type (i.e. Subsidized loans will be averaged separately from your Unsubsidized loans).
  • You will continue to have the same benefits of the federal loans (deferment and forbearance options, partial interest deduction for ACH payments, etc).
  • You will have a minimum of 4 (maximum of 5) repayment plans available to determine the best plan for your repayment.  IMPORTANT NOTE: The Extended Repayment, in most cases, causes you to pay double what you originally borrowed with the amount of interest you will accrue over the life of your repayment plan.
  • You will keep any grace period you are currently active in when you choose the correct month and year end date of your grace period at the beginning of the application.
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