Benefits of Federal Loan Consolidation

A Federal Consolidation Loan allows you to combine one or more of your federal education loans into a new loan that offers you several advantages.

Lower Interest Rate For In-School and In-Grace Consolidation
Borrowers who have a Federal Loan in an in-school or grace period at the time we receive their consolidation application, may benefit from a lower fixed interest rate on the new Federal Consolidation Loan. The difference between a borrower's interest rate during their in-school and/or grace period and during their repayment period can be as high as 0.6%.

Lower Interest Rate for Auto-Debit and On-Time Payment
Receive 0.25% off when you enroll in automatic checking account withdrawal. Add another 1.0% off after

One Lender and One Monthly Payment
With only one lender and one monthly bill, you will find it is easier to manage your debt. You will have only one lender, the Student Loan Network, for all loans included in your Federal Consolidation Loan.

Flexible Repayment Options
You can choose from different plans to repay your Federal Consolidation Loan. These plans are flexible to meet the different needs of borrowers. With a Federal Consolidation Loan, you can switch repayment plans at anytime.

Grace Period
If you consolidate while in-school, you may receive a 6-month grace period before repayment begins.

No Fees
Consolidation is free.

Varied Deferment Options
Federal Consolidation Loans offer several deferment options. If you have exhausted the deferment options on your current Federal education loans, a Federal Consolidation Loan could renew those deferment options. In addition, you may be eligible for additional deferment options if you have an outstanding balance on an FFEL made before July 1, 1993, when you obtain your first Federal Loan.

Reduced Monthly Payments
A Federal Consolidation Loan may lower your monthly payment. The minimum monthly payment on a Federal Consolidation Loan may be lower than the payments on your federal education loans.

Retention of Subsidy Benefits
You will keep any subsidies on your old loans.