The program provides subsidized, unsubsidized, PLUS, Grad PLUS and consolidation loans to borrowers for educational purposes. All continuing borrowers (those that have student loans through the FFEL program) will be required to complete a new Master Promissory Note with the Department of Education.
All continuing borrowers (those that have student loans through the FFEL program) will be required to complete an entrance interview with the Department of Education.
Typically, consolidation is the best option of getting out of default quickly, as you’re able to move directly into an Income-Driven Repayment plan and can immediately start building credit towards Public Service Loan Forgiveness if you’re eligible.
Lower Monthly Payment Consolidation loan monthly payments are lower because the repayment period is longer.
Loss of Deferment and Forgiveness Benefits You may not be eligible to receive the same deferments on your Consolidation Loan that you were eligible to receive on your original loans.
Federal student loan borrowers have the option of consolidating their loans via the Direct Consolidation Loan program offered by the U. That loan is then serviced by the servicer of your choosing – of which Nelnet is one!
Consolidating allows you to merge multiple eligible loans into a single loan.