Frequently Asked Questions about Federal Loan Consolidation Rates

Here are the answers to the most commonly asked questions about federal loan consolidation rates.

Am I eligible for federal loan consolidation?

If you have at least one federal student loan that is in repayment, deferment, or grace-period status, then you are probably eligible. You cannot consolidate loans if you are still in school.

Can I consolidate loans in default status?

Yes, you can consolidate most student loans that are in default status if you arrange a repayment plan that is acceptable to your current lender(s). Some federal consolidation loan providers may also allow you to include defaulted loans in your consolidation if you repay your consolidation loan on an income-contingent payment schedule.

How can I compare federal loan consolidation rates?

The easiest way to compare rates is to sign up for our no-cost quotes. We will show you the federal loan consolidation rates of at least four different lenders for comparison purposes. If you find the rate you're looking for, you can apply for a consolidation loan on the lender's website.

Can PLUS loans be consolidated?

Yes, PLUS loans are eligible for consolidation. PLUS loans are typically offered to students in professional and graduate programs or parents of graduate students who are dependents.

I already have a consolidation loan. Can I consolidate this existing loan?

You can consolidate a federal consolidation loan in three cases: if you include a new loan in the consolidation, if your current consolidation loan is in default, or if you plan to request loan forgiveness through a public service program.

Once I consolidate, when can I stop making payments on my loans?

After you find the best federal loan consolidation rates, choose a lender, and consolidate, you should continue making payments on your existing loans until your current lenders tell you that your balance has been paid in full. Your present lenders should inform you when your consolidation loan lender pays off your balances. Do not stop making payments until you have this verification.

What happens if I default on a federal student loan?

Having a federal loan in default status usually means that you did not make a payment for 270 days (may vary by type of loan). If this happens, the Department of Education (DOE) can demand that you pay the loan in full immediately. In addition, the DOE will notify the credit bureaus of your delinquent status, which will damage your credit rating. Finally, your tax refund may be withheld and/or your wages garnished.

Are all loans the same when it comes time to consolidate?

Health professions loan holders and those who have Perkins loans fall into a different category than most federal loan borrowers. If you have this type of loan, you must consider several factors before looking for federal loan consolidation rates.