Office of Student Financial Aid

Pros & Cons of Consolidation

Consolidation can lower the borrower's total monthly repayment and simply loan repayment. Because the repayment period for the consolidated loans is often longer than for most Federal Direct Loans, the monthly payments may be lower. However, the total interest that is paid over the longer repayment period is usually greater. If the borrower has more than one loan, a consolidation loan simplifies repayment because there's only one lender and one monthly payment. Consolidation may be an option for a borrower in default, if certain conditions are met. The borrower should also be aware that some deferments and other benefits available with his/her current loans (especially Perkins) may be lost through consolidation.

For more details about consolidation, you may visit