Consolidation

A Consolidation Loan is designed to help borrowers simplify loan repayment by allowing the borrower to consolidate several types of federal loans with various repayment schedules into one loan. The interest for Consolidation Loans is fixed for the entire time you are repaying the loan at the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest one-eighth of a percent. Consolidation Loans can be obtained through participating lenders, guarantee agencies, and, under certain conditions, through the federal government.

Who should not consolidate their Perkins Loan?

If you are eligible to cancel your Perkins loan, you should not consolidate your loan. Areas eligible for cancellation are: elementary/secondary/headstart teachers, military personnel, peace corps/visa personnel, law enforcement/correctional officers, qualified professional providers of early intervention, employees of child or family service agencies, nurses, or medical technicians. For further information on cancellations, click here.