College Loan Consolidation

Federal Consolidation Loans - Student & Parent Loans

 

Loan consolidation is similar to refinancing, but there is no loan fee. It simplifies loan repayment by combining several types of federal education loans into one new loan—Federal Direct loans borrowed while at Hampshire and at previously attended college(s), Federal Stafford loans borrowed while at previously attended college(s), and Federal Perkins loans may be consolidated into one Federal Consolidation loan. Federal PLUS loans may also be consolidated into one Federal Consolidation loan. A borrower may consolidate just one loan.

 

Students and parents who borrow under one or more of the federal loan programs may consolidate, or refinance, their loans into one Federal Consolidation loan. The interest rate is FIXED at the weighted average of the rates of the loans being consolidated.

 

For loans first disbursed on or after July 1, 1998 through June 30, 2006, the fixed interest rates for federal consolidation loans, effective July 1, 2006 through June 30, 2007, are as follows:

6.625% FIXED for Direct student loans (for loans approved during grace, and deferment periods);

7.250% FIXED for Direct student loans (for loans approved during repayment and forbearance periods);

8.000% FIXED for Federal PLUS loans.