Loan Consolidation

If you have more than one federal student loan (excluding Trinity College Institutional Loans) you may be eligible to consolidate your loans into one loan.  The benefits of doing this include lowering your monthly loan payments, having only one monthly bill to pay, and having only one loan servicer to contact concerning your loans.  However, there are some potential pitfalls you should be aware of.  Even though your monthly payment may be lowered, the term of your loan will be extended and you will be charged more interest.  If you are consolidating a Perkins Loan, you will lose any possible cancellation benefits.  Finally, the interest rate on a consolidation loan may be higher than the rates on the individual loans you are attempting to consolidate.

Consolidation Phone #:  800-557-7392

www.loanconsolidation.ed.gov

Email address is: loan_consolidation@mail.eds.com

Benefits: 

Fixed interest rates
Lower monthly payments
One lender to simplify repayment
Extended repayment period
No prepayment penalties 

Pitfalls:

Higher total interest costs
Potential loss of benefits by consolidating Perkins loans
Potential loss of grace period
Can consolidate only once 

Websites: www.loanconsolidation.ed.gov