The amount increases every two years until the balance of the loan is repaid over a ten year period. The amount of interest paid over the life of the loan is higher with this option than with level repayment. With an income sensitive repayment schedule, the monthly payment amount is adjusted annually to reflect changes in the borrower's income, based on the total monthly income and student loan debt. This option may be used for a maximum of five years, when the account will be converted to level or graduated repayment. Consolidated Loans reduce the total payment amount by combining outstanding student loans into one new loan.
Consolidation creates a new promissory note.
No minimum balance is required to qualify for loan consolidation. However, consolidation may result in fewer deferment options and a higher interest rate. The repayment period may be up to 30 years, depending upon the amount to be repaid. To compare repayment terms between multiple standard loans and the resulting consolidated loan, refer to our repayment term comparison chart. Married borrowers may consolidate each individual's loans into one loan, with certain restrictions.