Frequently Asked Questions About Loan Consolidation

Can my loan be consolidated?

Most federal loans (such as Stafford, Perkins and PLUS loans) can be consolidated. The experts at bestloanconsolidationprogram.com can assist in determining your eligibility. Private student loans - which come from institutions like banks - cannot be consolidated under the same guidelines as federal loans, but are available for consolidation under separate programs.

Will my interest rate go down?

Possibly. Go over your existing loans' interest rates and compare them to the proposed consolidation rates, taking into account your lower monthly payment. You could save money in both overall payment and interest rate.

What are the benefits of consolidating my loans?

You'll have the ease of one payment, the convenience of consolidating without a credit check, only one lender to work with, and no prepayment penalties.

Are there drawbacks to loan consolidation?

There could be. Your interest rate could be higher than one of your previous loans and it could take longer to pay off.

How do I know if I'm eligible to consolidate?

If you are a U.S. citizen, finished with school, owe at least $7,500 (it varies by the lender) and are in good standing on your existing student loans, you should be able to consolidate.

I've already consolidated my student loans. Can I do it again?

Probably not. Generally, consolidation is a one-time process. But some loans that were under the federal Direct Loan Consolidation program can be re-consolidated. Be sure to ask your lender about your options.

How do I choose a consolidation lender?

You've already taken the first step, which is research. Read, ask questions and compare programs to find the best option to fit your needs.