FAQs about Student Loan Debt

Here are the answers to the most commonly asked questions about student loan debt.

What qualifies as student loan debt?

Student loan debt includes all of your educational loans, whether private or federal. PLUS loans for parents and Grad PLUS loans for graduate students also qualify as student loan debt. Student loan debt is basically any financial aid you received that you must repay, with interest.

What is student loan debt consolidation?

Student loan debt consolidation allows you to combine all of your student debt into one, lower-interest loan. The consolidation loan pays off all of your current student loan debt, and you then make payments to your consolidation lender. Student loan debt consolidation is a way to reduce your interest rates and monthly payments, thereby easing your student loan burden.

How can student loan debt consolidation help me?

By consolidating your student loan debt, you will enjoy several benefits. For one, you will have the convenience of making one monthly payment on your student loan debt rather than several. You have only one due date, one creditor, and one loan to worry about. Secondly, student loan debt consolidation can reduce your monthly payments by up to 60%. That means you will have more money to devote to your other expenses. Additionally, consolidation will help you lock in a low, fixed interest rate to avoid the risk of future rate increases. Finally, you also have the option of extending your repayment period to up to 30 years.

How much does student loan debt consolidation cost

For most student loan debt, a consolidation loan is completely free. With federal loan consolidation, there is no credit check, no application or origination fees, and no pre-payment penalty. For private student loans, you can still apply for free, but the terms may differ from those of federal loans.

Will the consolidation loan be provided by the government?

For federal student loan debt consolidation, your loan will be provided by a private lender but will be backed by the federal government. In other words, you will make your payments to an individual lender even though the loan is federally-guaranteed. You will also retain all of your original borrower benefits when you consolidate.

How do I apply to consolidate my student loan debt?

You can apply for student loan consolidation by clicking “apply now” anywhere you see it on our site. This will take you to our short, free application for consolidation services. You can complete the entire application process online, so there are no papers to sign. The application will take only a few minutes to fill out and is completely secure.