Under the Direct Loan Consolidation Program, you can consolidate Subsidized and Unsubsidized Stafford Loans, Supplemental Loans for Students (SLSs), Federally Insured Student Loans (FISLs), PLUS Loans, Direct Loans, Perkins Loans, Health Education Assistance Loans (HEALs), and just about any other type of federal student loan.Loans that are not eligible for consolidation include state or private loans that are not federally guaranteed.If you had any special benefits like a principal rebate attached to your original loan, you will lose those when you consolidate.
However, you should be aware that lengthening the term of your loan will mean paying more interest over the life of the loan and making more total payments, both of which increase the cost of the loan.If you’re still paying off Parent PLUS loans, you could be overpaying. We offer a range of options so you can optimize your monthly payments, lifetime cost, or payoff speed.Save money and simplify your payments by consolidating Federal Parent PLUS loans with So Fi. There are no origination fees in most states or prepayment penalties. Consolidating federal student loans may be a good strategy to lower monthly payments or to get out of default, but it is not always a good idea.As you weigh the pros and cons, keep in mind that timing is critical.You will lose your rights under the federal loan programs once you choose to consolidate with a private lender.Direct consolidation loans are now the only type of federal student consolidation loan.While this may help borrowers that only need to manage a Direct PLUS Loan, the situation becomes more complicated if you are making payments on your own student loans as well.Borrowers in this situation can consolidate their Direct PLUS Loan(s) with their own student loans, but in doing so they waive their right to any benefits or features that would have been available on their existing loans.In loan consolidation, your existing student loans are paid off and replaced by a new, large loan combining all those amounts.You only have to track one monthly payment, and that payment may be lower if your repayment term is lengthened (the maximum in the Direct Consolidation Loan, discussed below, is 30 years).