Consolidation Loan

The Consolidation loan program offers eligible borrowers the opportunity to consolidate education loans into a single new loan.

If you are currently in repayment, and owe $25,000 or more, you may want to consider a consolidation loan. Weigh the pros and cons of consolidation and decide what is in your best interest.

Types of Eligible Loans

• Federal Stafford Loans (subsidized and unsubsidized)
• Federal PLUS Loans (students may not consolidate their parent's PLUS Loan with their own)
• Federal Direct Student Loans
• Federal Direct PLUS Loans
• Federal Perkins Loans
• Health Professions Student Loans
• Nursing Student Loans
• Federally Insured Student Loans
• Federal Consolidation Loans (only when a new eligible student loan has been obtained)

Advantages of Consolidation

• Lower monthly payment
• One monthly payment
• Fixed rate for the life of the loan
• Extended repayment period
• No penalty for early payoff
• No limit to the dollar amount
• Consolidation is FREE

Disadvantages of Consolidation

• Longer repayment period increases the amount of interest paid over the life of the loan
• Loss of some deferment eligibility
• Available only once, unless you have acquired a new eligible education loan
• Personal loans or private lender alternative student loans are not eligible for consolidation

Note: Health Education Assistance Loans (HEAL) and spousal consolidation loans are not eligible under our program.

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Interest Rates
The interest rate is determined at origination of the loan and is the weighted average of those loans being consolidated, rounded up to the nearest 1/8th percent, or 8.25% whichever is lower.

Repayment Terms
The repayment period is determined by the combined total of education loan debt, which includes the loans being consolidated plus any other education loans you may owe but are not including in the consolidation. The repayment periods are as follows:

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Extending the repayment period increases the amount of interest you pay over the life of the loan, however, there are no prepayment penalties if you pay the loan off early. Use the Consolidation Calculator to estimate your new payment.

Download and print the Federal Consolidation Loan Application. Adobe Acrobat Reader is required to print the application. If your computer does not have Acrobat Reader installed, it is available for free at Adobe's website. An online Federal Consolidation Loan Application is now available on the Great Lakes website. After you log in, Great Lakes will walk you through the consolidation application process. If you have any questions regarding this online application please call Great Lakes at 1-800-236-6600.

For more information about consolidation or if you would like us to mail you a Federal Consolidation Loan Application, contact our Education Loan Department at 800-789-6765 or .

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