Student Loan Consolidation Deadline: April 30th
Key Points:
- Consolidate federal student loans into a single Direct Loan with fixed interest rate by April 30th.
- Consolidation can maximize debt relief under Biden's student loan forgiveness program or other existing plans.
- All federal loans, including Perkins Loans and Parent Plus loans, are eligible for consolidation.
What is Student Loan Consolidation?
Consolidation combines existing loans into a new loan with a fixed interest rate. It allows borrowers to:
- Convert FFELP, Perkins, and other non-Direct Loans into Direct Loans, which offer more debt relief benefits.
- Streamline multiple loans with different repayment schedules into a single monthly payment.
- Select an income-driven repayment plan, potentially leading to loan forgiveness.
Will Consolidation Raise My Interest Rate?
- No, generally not. The new interest rate will be a weighted average of the consolidated loans, rounded up to the nearest 1/8th of 1%.
- However, FFELP loans may lose certain discounts upon consolidation.
Eligibility for Debt Relief
- Consolidating federal student loans can help maximize potential debt relief.
- It can ensure c