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Federal consoidation availability
June 24, 2018
10:23 am
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Barry
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I have a Perkins loan administered by Heartland with a current balance of $9414 and an interest rate of 5%.
Additionally, I have eight federal loans administered by Navient with a total balance of $26,317. Four of these are subsidized and four are unsubsidized and the interest rates vary from 3.4 to 6.8 %.
My question is can all of these 9 loans be consoldated into one federal loan with one monthly payment.

June 24, 2018
10:32 am
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Indiana
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Forum Posts: 334
Member Since:
May 3, 2014
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First, a warning: Federal direct consolidation is normally done so that certain federal loans may qualify for preferred repayment or forgiveness plans. You may not want to consolidate if you are already part of the way towards student loan forgiveness. If you do decide to go forward with it, make sure to carefully review program eligibility before and after consolidation.

To answer you question, yes, multiple federal loans can be combined through federal direct consolidation (only available through the Department of Education for federal loans). However, you will likely have 2 loans if you go through this process rather than just one. This is because subsidized and unsubsidized loans are normally kept separate.

The interest rate will be the weighted average of your old loans.

A good starting point for your research into direct consolidation can be found here: https://studentaid.ed.gov/sa/repay-loans/consolidation

Best of luck!

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