Lenders may choose not to make consolidation loans to borrowers who have defaulted on prior loans or not allow them to include a defaulted loan in the consolidation. The Direct Loan program has options for a defaulted borrower to consolidate and regain eligibility for Federal student aid. Consolidation may include, in addition to unpaid principal and interest on the underlying loans being consolidated, late charges and collection costs applied to those loans. Improve debt management since monthly payment is reduced and repayment period is extended. Money management tool - improves cash flow.
Married couples can consolidate their loans.
May consolidate defaulted loans with some restrictions. Total amount repaid increases. You may not reconsolidate the same loans again, May lose grace period and some deferment periods. It is important to note that in loan consolidation there are frequent changes. You should research all your consolidation options carefully.