Federal Consolidation Loans - Student and Parent Loans

Loan consolidation is a process similar to refinancing. Loan consolidation allows a borrower of loans from one or more federal education loan programs to consolidate the loans into one loan. A borrower may also consolidate, or refinance, just one loan. The consolidation loan pays off the various loans and simplifies loan repayment by combining several federal education loans into one new loan.

Eligible loan programs for the federal consolidation student loan include any Direct loans borrowed while at Hampshire, Stafford loans borrowed while at a previously attended college(s), and Perkins loans. PLUS loans may be consolidated into a PLUS Consolidation loan.

There are no fees and no pre-payment penalities on a federal consolidation loan. Repayment terms range from 10 to 30 years, depending on the amount being refinanced. 

The interest rate on a federal consolidation loan is FIXED at the weighted average of the rates of the loans being consolidated. The rate is rounded up to the nearest one eighth of one percent.

Read through the information to the left to see how you may benefit if you refinance your current federal education loans. If you have any questions, or need help clarifying the benefits, please feel free to contact our loan counselor.