What is a Federal Consolidation Loan, and is it for me?
A Federal Consolidation loan allows a borrower to refinance one or more variable interest education loans into one new fixed rate loan. The original student loan is paid in full and a new loan is originated.
Who is Eligible for a Federal Consolidation Loan?
Anyone who has eligible education loans who wants to lock in a low, fixed interest rate will benefit from consolidation.
Interest Rates and Fees
Interest rates are fixed for the life of the student loan. They are based on the weighted average of the interest rates of the loans being consolidated rounded up to the nearest 1/8th% or 8.25%, whichever is less. There are no loan fees.
Repaying Your Student Loans
You may choose from three student loan repayment options to find the one that best fits your unique financial situation.
If you are interested in consolidating your graduate student loans, Goal Financial's Student Loan Consolidation Center can help. Here are just a few of the benefits they offer:
- Additional interest rate reductions available of up to 1.5 percent for auto-debit and timely repayment.
- Make one monthly student loan payment through one lender.
- Retain many of the pre-existing benefits available with your initial student loan, including deferment and forbearance options, and loan forgiveness in the event of death or full disability (may not apply to Federal Perkins loan).
- A trained staff provides the information you need to make an informed decision.
- Consolidating your federal student loans costs you nothing and can save you money every month.
- Deduct a portion of your consolidation loan interest on your federal income tax return, if you qualify. Visit the IRS Site for detailed information.
Visit Goal Financial's Student Loan Consolidation Center to learn more about consolidating your existing student loans.