Lower Monthly Payments: Most federal education loans have a maximum repayment period of ten years. A consolidation loan allows you to extend the term up to 30 years, which may lower monthly payments by as much as 63%. Interest Rate Cap Reduction: PLUS loan borrowers automatically receive a reduction in the interest rate cap from 9% to 8.25%. One Convenient Payment: You only need to make one payment a month versus multiple payments with different due dates to different banks. One Fixed Interest Rate: A Consolidation Loan is a fixed rate that will never increase. No Penalty For Early Repayment: You may prepay your Consolidation loan at any time without penalty. Four Repayment Plans: ScholarPoint offers a Graduated Payment Plan, a Level Payment Plan, an Income Sensitive Payment Plan, and an Extended Payment Plan depending on your needs. Simple Loan Application Process: Applying for a Consolidation loan is hassle-free. There are no credit checks, application, origination, or processing fees.