www.loanconsolidation.ed.gov

One Lender, One Monthly Payment

Free consolidation, no hidden fees

Flexible Repayment Options: 4 different plans

Deferment & Forbearance Options

Lock a fixed interest rate, specifically if you borrowed federal loans prior to June 30, 2006, which have a variable rate, capped at 8.25%.

No penalties if your payment in full occurs earlier

Federal Direct Subsidized and Unsubsidized Loans

Stafford Subsidized & Unsubsidized Loans

Perkins Loans

Graduate PLUS loans have a fixed rate of 7.9% consolidating this loan with other federal loans,

will have to calculate a weighted average of the interest for your new fixed interest.

University Long Term Loans: ACS collects payment: 877-562-6842

Private or alternative loans: Work directly with the lender to set up your repayment.

6 month grace period before repayment is required, consolidating during grace period forfeits any remaining months. The new grace period would be 30-45 days after consolidation.

If you include a Federal Perkins loan, the 9 month grace period now forfeits to the 30-45 days after consolidation.

Consolidation allows the borrowers to repay their loans over a longer period of time.

If you select the Extended Repayment, you may end up paying more in interest costs and may not qualify for loan forgiveness options.

6 month grace period before repayment is required, consolidating during grace period forfeits any remaining months. The new grace period would be 30-45 days after consolidation.

If you include a Federal Perkins loan, the 9 month grace period now forfeits to the 30-45 days after consolidation.

Consolidation allows the borrowers to repay their loans over a longer period of time.

If you select the Extended Repayment, you may end up paying more in interest costs and may not qualify for loan forgiveness options.

College Cost Reduction & Access Act of 2007 established a public service loan forgiveness program.

It discharges any remaining debt after 10 years of full-time employment in public service.

The borrower must have made 120 monthly payments through Direct Loans. Payments made on/after Oct.1,2007 count toward the120 payments.

Must be in “Eligible Employment” to be considered for all 10 years.

Public service, emergency service management, state or federal government (excluding time as a member of Congress), military, public safety & law enforcement-police & fire, public health, public education, early childhood, social work, child & family service agencies, public service for disabled or eldery, public librarians, school librarians, employees of tax exempt 501(c)(3) org.

Public interest legal services (prosecutors, public defenders, and legal advocacy on behalf of low-income communities at a nonprofit organization).

Full-time faculty at tribal colleges and universities, faculty teaching in high-need subject areas and shortage areas (including nurse faculty, foreign language faculty, and part-time faculty at community colleges), also qualify.

Must enroll in the income-based repayment (available option as of Oct.’09, income contingent repayment, standard repayment or a combination of these repayment plans.

Payments made under other repayment plans (e.g., extended repayment and graduated repayment) do not count.

To maximize the amount of forgiveness, borrowers should use income-based repayment.