Consolidating Student Loans

   Interest rates are at an historical low point right now. Loan consolidation has never been more attractive. You can consolidate your student loans after having been in repayment and save on interest. Simply put, there will never be a better time to consolidate than right now.

   Loan consolidation enables you to combine all of your student loans into one loan. Essentially, your current student loans are paid off and a new loan is originated with the combined balance. Consolidating your student loans has several advantanges:

• Fixed interest rate
• Extended and income sensitive repayment plans
• Lower monthly payments based on extended repayment and low fixed interest
• One check to write
• One lender to work with

   If you have alternative or private education loans, some lenders will also consolidate these loans as well.

   Loans that are eligible for inclusion in the Federal Consolidation Program:

• Subsidized Federal Stafford Loans
• Unsubsidized Federal Stafford Loans
• All Federal Direct Student Loans (Direct Loans)
• Federal Parent Loans for Undergraduate Students (PLUS)
• Federal Perkins Loans
• Health Professions Student Loans
• Health Education Assistance Loans (HEAL)
• Nursing Student Loans
• Federal Supplemental Loans for Students (SLS)
• Auxilliary Loans to Assist Students (ALAS)
• National Direct Student Loans (NDSL)
• Federally Insured Student Loans (FISL)
• Federal Consolidation Loans

   Most Federal student loans have variable interest rates. Those rates are adjusted each year. A Federal consolidation loan has a fixed interest rate. The interest rate you pay is determined at the time of consolidation and is based on a weigthed average of the interest rates you are paying on your current student loans. As mentioned above, current rates are very low meaning that you will be able to "lock in" a low fixed interest rate with loan consolidation.