At least one of the eligible loans is owned by the lender processing the consolidation or if not, none of the Institutions that own the loans have a consolidation program. Married couples may jointly consolidate to meet minimum loan debt requirements, take advantage of an extended repayment term, and enjoy the convenience of one monthly payment. Once a borrowers loans are consolidated, the interest rate is fixed for the full term of the loan. The interest rate is based on a weighted average of the underlying loans consolidated. The payment amount is the same amount over the entire term of the loan, with each payment covering a portion of both principal and interest.
Monthly payments begin low and increase gradually at a predetermined rate over the repayment period.
A formula is used to tie your payment to your income. The monthly installment amount will be adjusted annually to take into account fluctuations in your income. Monthly payment cannot be less than the accruing interest. There is no original fees or charges of any type. The length of the loan term is determined by the borrowers total student loan debt.