What is Consolidation?

Loan consolidation allows eligible borrowers to combine loans obtained from more than one lender and or several programs into one new loan. Loans eligible for consolidation must be either in grace or repayment. Defaulted loans can be considered if satisfactory repayment arrangements have been made with the lender or grantor.

Pros and Cons of Consolidation

Many things should be considered before making a decision to consolidate your loans. The following information will help you assess the pros and cons of consolidation:



Loan consolidation is not for everyone. Before consolidating, you should consider if the immediate benefit of lower monthly payments justifies a longer payment period. Borrowers should also realize that private/institutional loans can NOT be consolidated with their federal loans.

Review the Loans at a Glance FAQ sheet to see details regarding consolidation eligibility for your loan.

Loans Eligible for Consolidation