Consolidating subsidized and unsubsidized student loans
The length of the term is always based on the size of the loan.
A Standard Repayment Plan may be in your best interest if you want to pay off your loans as soon as possible, you have less than 30 years on your term, you have a higher income (i.e., you don't qualify for income-based repayment), or if you have little student loan debt.
The interest rate on a consolidation loan is between the highest and lowest interest rates of the loans being consolidated.
Through June 30, 2013 the interest rates on a consolidation loan were capped at 8.25%.
You must make 120 on-time, full, scheduled, monthly payments on your Direct Loans. You must make those payments under a qualifying repayment plan.
If you are not currently in a qualifying program we can assist you in getting enrolled.
Apply Today If you don't choose a different repayment plan, all of your Federal Loans will be set under a Standard Repayment Plan.
Monthly payments are calculated based on the size and term of the loan.
Assuming a 10-year repayment term, the monthly loan payments on the 3.4% and 6.8% loans would be .81 and 5.08, respectively, a total of 8.89, while the monthly payment on the consolidation loan would be 8.84.
Eligible Loans Include: Direct Subsidized & Unsubsidized Loans, Subsidized & Unsubsidized Federal Stafford Loans, and all PLUS Loans.
If you currently receive a low income, but expect it to regularly increase with time, enrolling in a Graduated Repayment Plan may be in your best interest.
You will be given a lower monthly payment to start, and then this payment will increase incrementally every two years.
If you work with Student Debt USA and you happen to lose your job or a substantial amount of income, we'll get you into a new repayment plan with the same term and a drastically lower monthly payment.