Consolidation means refinancing one or more loans. The original loans are paid in full, and you then have a new loan with new terms and conditions for the combined balance.
The term “consolidation” is usually synonymous with federal consolidation, although some private lenders offer consolidation loans as well. Federal consolidation means combining multiple eligible federal student loans with various repayment schedules into a new federal loan with a single monthly payment. With a federal consolidation loan, you…
Remember – if you take longer to repay your loan, you’ll pay more interest over the life of the loan. The shorter your repayment period, the lower your total interest payment.
There is Direct Loan consolidation and Federal Family Education Loan (FFEL) consolidation. Not all borrowers with federal loans are eligible for both Direct Loan and FFEL consolidation. The best advice is to check with your loan servicers to find out what consolidation options are available to you. There are some differences between Direct Loan and FFEL consolidation, such as:
Note: Effective July 1, 2006, there is no in-school consolidation or option to accelerate loans into repayment status for the purpose of consolidating them.
In most cases, you may choose to repay through one of four repayment plans: standard, extended, graduated and income-contingent. Most borrowers may change repayment plans at any time and there’s no limit to the number of times you may change plans.
Loan exit counseling
If you borrowed a Federal Direct Stafford Loan, Federal Perkins Loan or Federal Direct Graduate PLUS Loan, you are required by federal law and MIT policy complete an exit interview online before graduation. If you borrowed an MIT Technology Loan, contact your loan counselor to schedule an exit interview. Required reading: the SFS loan exit counseling guide.
Loan entrance counseling
Online counseling via WebSIS is required for all first-time borrowers of Federal Direct Loans, Federal Perkins Loans and MIT Technology Loans.
Campus Partners handles billing and payment for Federal Perkins Loans and MIT Technology Loans.
StudentLoans.gov handles billing and payment for Federal Direct Loans and Graduate PLUS Loans.
Loan payment calculator
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