Q: Who is eligible for federal student loan consolidation?

A: Individuals with federal student loan debts totaling $10,000 or more are eligible for federal student loan consolidation. You do not need collateral, a co-signer, or even proof of employment in order to consolidate.

Consolidation makes a lot of sense for two reasons: 1) By combining several loans at varying interest rates, consolidation can lower your overall interest rate. 2) By combining loans with varying maturities (i.e. a five-year loan, a three-year loan, and a seven-year loan), it can lower your monthly payment. For example: Stretching three-, five-, and seven-year loans into a new ten-year loan could lower your monthly payments considerably. The downside, of course, is that you will be paying more in total interest -- even if your interest rate is lower than any of the three loans, individually -- over time.

Other Student Loan Consolidation FAQ's Related Student Loan Consolidation Articles
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