Your repayment period will not be extended and you will not have to sign a new promissory note. If you'd like to serialize your loans, you may do so by filling out the Loan Purchase Request Form and returning it to Educaid. The Federal Consolidation Loan combines two or more of your existing student loans into a single loan with one lower monthly payment. There are both pros and cons to consolidation, so be sure to check into all the details before deciding to apply. The interest rate you will receive for the Federal Consolidation Loan depends on the date on which you take out the loan.
Student loans are consolidated free of charge.
You make equal monthly payments during the entire term of the loan. You pay only interest for up to 4 years, then graduated or higher level amounts for the remaining repayment term. Income Sensitive Payments. You can match your payment obligations with your current income. The amount you repay is adjusted annually based on your expected monthly gross income.