Consolidating your student loans


03-Oct-2019 19:18

Loan consolidation allows you to pay off one or more federal student loans with a new consolidation loan.To consolidate a defaulted federal student loan into a new Direct Consolidation Loan, you must either Note: If you choose to make three payments on the defaulted loan before you consolidate it, the required payment amount will be determined by your loan holder, but cannot be more than what is reasonable and affordable based on your total financial circumstances.While loan rehabilitation takes several months to complete, you can quickly apply for loan consolidation.However, loan rehabilitation provides certain benefits that are not available through loan consolidation.Your required monthly payment amount is determined by your loan holder.Find out where to go for information about your Perkins Loan.

If you choose to repay the new Direct Consolidation Loan under an income-driven plan, you must select one of the available income-driven repayment plans at the time you apply for the consolidation loan and provide documentation of your income.

You must provide documentation of your income to your loan holder.