The repayment term on a consolidated loan ranges from 12 to 30 years depending on the total amount of your student loans.
Outstanding Balance Maximum Term
$7,500 - $9,999 12 Years
$10,000 - $19,999 15 Years
$20,000 - $39,999 20 Years
$40,000 - $59,999 25 Years
$60,000 or more 30 Years
Note: You may always prepay your loan with no penalties at any time to reduce your total loan cost.
Repayment Options
You may choose one of several repayment options for your consolidation loan. The repayment term ranges from 12 to 30 years depending on the total amount of your student loans.
Level Repayment
A level repayment schedule means you pay equal monthly payments over the term of your loan. This is our standard and most popular repayment option.
Graduated Repayment Plan
This option allows for low, interest-only minimum payments for either the first 2 or 4 years of your repayment period. A level repayment plan is calculated for the remainder of the repayment term.
Income-Sensitive Repayment Plan
With this option the amount of your monthly payment is adjusted annually, based on your total monthly gross income. You must provide documentation that allows the lender to make a reasonable determination of what your payment amount should be.
Extended Repayment
Under an extended repayment schedule, you can repay your consolidation loan over a 25-year period on a level or graduated payment plan if you have FFEL loans in excess of $30,000. If you have loans in excess of $60,000 and wish to repay over a 30-year period, you should select one of the other repayment options.
By extending your loan term or selecting one of our graduated repayment plans, you can lower your monthly payments by as much as 45%. If you would like additional information on any of these options please call and speak to one of our loan counselors. Remember, there is NO PENALTY for early repayment of your loan - so you can pay off the loan at any time, or simply make higher repayments when you are able. You should note that by extending your payments, your overall financial obligation may increase, because you will be making payments (principal plus interest) for a longer period of time. If you do not choose to repay your loan in full prior to the end of the extended period, the total cost of your loan will be greater than what you would have paid if you had not extended the term.
The fixed interest rate on your Consolidation loan is calculated based on a statutory formula established by the Federal Government. When you apply to consolidate your loans we are required by law to take the weighted average of the interest rates that you are currently paying on your existing Federal student loans, rounded up to the nearest one-eighth of a percent or 8.25%, whichever rate is less.
Consolidate with us and you can reduce your interest rate by up to an additional 1.25% with the following borrower benefits:
-25% interest rate reduction for using our automated debit program to repay your loan
-A 1.0% interest rate reduction if you make 36 consecutive, on-time, monthly payments.
While we reserve the right to modify, expand or discontinue this borrower benefit program or any similar program at any time without notice, any future changes we make will NOT affect consolidation loans that we have already processed and disbursed (i.e. by consolidating now you lock in your eligibility for these benefits for the life of your loans).
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