Loan Consolidation Loan Consolidation can be used to combine your education loans into a single account or to refinance your loans with a lower monthly payment. Repayment terms can be extended up to 30 years, depending on how much you owe. Longer repayment terms mean lower payments but it also means you will pay a greater amount of interest over the life of the loan. Interest on your loan will accrue daily. Extra amounts paid above your monthly payment amount will lower the interest you pay over the life of the loan and can also shorten the repayment term.
Interest accrues from payment to payment.
If your payment is received late or days later than the previous month's payment, more of your payment will be applied towards accrued interest than principal. Try to mail your payments close to the same day each month and pay extra whenever possible. Loans can be sold Your loan can be sold by your original lender to another lender. If this does happen, you will be notified by mail of any necessary information. None of your original repayment terms may be changed when your loan is sold.