Why Consolidate?

Top four reasons to consolidate your academic debt:

1Blessed by the Fed
A consolidation loan is a practical, student debt management tool provided by the U.S. Department of Education under the Higher Education Act that enables you to bundle all of the federal loans you received to finance your college education into a single loan.

2Low rates locked in for life
When your consolidation loan is issued, your lender pays off the outstanding balances of all the loans you put in the consolidation. In essence, you refinance your education debts and fix to the current low rates for the life of your loan. No matter how high the rates escalate, your loan will remained at a low fixed rate.

3One simple low payment each month
In addition to simplifying record-keeping and check-writing chores, consolidation can significantly reduce your monthly payment burden. That's because consolidation allows you to stretch your repayment period from the standard 10 years to up to 30 years, depending on the amount of your education debts. The lower payment means you'll have more money available to meet other household expenses, including car payments, childcare, and career-related necessities.

4No prepayment penalties
Extending the repayment period increases your total interest payments, because you'll be making smaller payments over a longer period of time. However, there also are no prepayment penalties for accelerating the payback of your Federal Consolidation loan. This means that you can create a payment plan that matches your financial situation, while at the same time locking in to the current rates that are well below historical averages.