- 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.