Why Consolidate?

  • One Lender and One Mortgage Payment
    With only one lender and one monthly payment due for student loans, it is easier than ever for borrowers to manage their debt. Borrowers have only one lender, the US Department of Education, for all loans included in a Direct Consolidation Loan.
  • Repayment Options
    Borrowers can choose from multiple repayment plans with various term selections to repay their consolidation loan(s), including an Income Based Repayment (IBR), Income Contingent Repayment (ICR) or Pay as You Earn (PAYE). These Plans are designed to be flexible to meet the different and changing needs of borrowers. With a consolidation loan, borrowers can switch repayment plans at anytime.
  • No Minimum or Maximum Loan Amounts
    There is no minimum amount required to qualify for a Direct Consolidation Loan.
  • Reduced Monthly Payments
    A consolidation loan may ease the strain on a borrower’s budget by lowering the borrowers overall monthly payment. The minimum monthly payment on a consolidation loan may be lower than the combined payments charged on a borrower’s Federal education loans.



We can help choose the best repayment option for your situation

  • Standard Repayment
    With the standard plan, you’ll pay a fixed amount each month until your loans are paid in full. Your monthly payments will be at least $50, and you’ll have up to 30 years to repay your loans with a fixed interest rate. The standard plan is a good fit for you, if according to your budget the IBR, ICR and PAYE plans are higher in monthly payment, as the standard plan does not account for your finances.
  • Graduated RepaymentWith this plan your payments start out low and increase every two years. The length of your repayment period will be up to 30 years. If you expect your income to increase steadily over time, this plan may be right for you. Your monthly payment will never be less than the amount of interest that accrues between payments.
  • Income Based Repayment Plan (IBR)Under this plan the required monthly payment will be based on your income during any period when you have a partial financial hardship. Your monthly payment may be adjusted annually. The maximum repayment period under this plan may exceed 25 years. If you meet certain requirements over a specified period of time, you may qualify for cancellation of any outstanding balance of your loans.
  • Pay As You Earn (PAYE)On December 2012 the DOE announced that borrowers with Federal Student Loans may now be able to take advantage of a new repayment plan that could lower their monthly federal student loan payments. The plan, known as Pay As You Earn, caps monthly payments for many recent graduates at an amount that is affordable based on their annual income. This new option follows through on President Obama’s promise to provide student graduates with relief on their student loan payments and help them responsibly manage their debt payments.
  • Income Contingent Repayment (ICR)This plan gives you the flexibility to meet your Direct Loan obligations without causing undue financial hardship. Each year, your monthly payments will be calculated on the basis of your adjusted gross income (AGI, plus your spouse’s income if you’re married), family size, and the total amount of your Direct Loans. Under the ICR plan you will pay each month the lesser of:
    1. the amount you would pay if you repaid your loan in 12 years multiplied by an income percentage factor that varies with your annual income, or
    2. 20% of your monthly discretionary income.

    If your payments are not large enough to cover the interest that has accumulated on your loans, the unpaid amount will be capitalized once each year. However, capitalization will not exceed 10 percent of the original amount you owed when you entered repayment. Interest will continue to accumulate but will no longer be capitalized. The maximum repayment period is 25 years. If you haven’t fully repaid your loans after 25 years under this plan, the unpaid portion will be discharged. You may, however, have to pay taxes on the amount that is discharged.