Is student loan consolidation right for you?

Before deciding if consolidating your student loans is right for you, we recommend you consider the possible benefits and impacts of a consolidation loan and how it may fit with your specific situation and needs.

Potential Benefits

Other Considerations

A lower interest rate
You'll have the option to choose between a fixed or variable interest rate.

If you have a fixed rate loan(s) and are considering refinancing your loan(s) into a variable rate consolidation loan, you may receive a lower interest rate, but your rate may change if the rate index changes.
A lower monthly payment
When you consolidate your student loans, you may be able to lower your monthly payment if you qualify for a lower interest rate and/or extend your repayment term. If your repayment term is extended, it will take you longer to pay back your loan and you will increase your total loan cost.

To reduce the cost of borrowing, you can make additional payments without penalty.
Simplify monthly payments
You have the option to consolidate your federal and private student loans into one loan and monthly payment.

If you choose to consolidate your federal student loan(s), the features and benefits associated with those loan(s) will not apply to your new consolidation loan. For example, certain repayment options, such as Income-based repayment, loan forgiveness for public service and other benefits will no longer apply to your new consolidation loan.

Once you have decided to consolidate your existing federal and/or private student loans, you will forego the features and benefits associated with those loans.
Apply on your own
You need to qualify for the consolidation loan on your own. If you choose to apply with a creditworthy cosigner, you may receive a lower interest rate.

If you choose to consolidate loans that currently have a cosigner, your cosigner will no longer be responsible for the loans you include in your new consolidation loan.