Student Loan Consolidation: FAQ
Top Questions About Consolidating Student Loans
Can I apply online?
Yes you can. NextStudent now offers Electronic Signature, to complete the online application experience. Just use our simple application wizard and you’ll be on your way to saving on your student loan payments.
Why should I consolidate my student loans?
Student loan consolidation offers many benefits, even if you’re currently making your monthly student loan payments without any difficulty.
- You can make monthly bill paying easier with one student loan payment to one lender.
- The rate on a federal consolidation loan is fixed for the life of the loan.
- Consolidating will help ease the pressure on your monthly budget by reducing your monthly student loan payment by 10% – 60%.
- You can save money by using your student loan payment savings to pay off high-rate debt, such as credit cards.
- Student loan consolidation will help your credit scores and debt-to-income ratio, both key factors if you’re looking to purchase or refinance a home.
See our before and after examples for a look at what consolidating your student loans can do for you.
Won’t my total loan cost increase if I extend repayment to 30 years?
Extending the repayment period on your student loans does increase total interest costs, since smaller principal payments are made over a longer period of time. However, there are no prepayment penalties for accelerating repayment on your student consolidation loan, so you could pay off the loan in a shorter period of time and save on total interest payments.
Can my parents consolidate their federal parent loans with my student loans?
All college loans being consolidated must be under the same borrower’s Social Security Number; thus, parents cannot consolidate their federal PLUS parent loans with their children’s federal Stafford student loans or vice versa.
How is the consolidated interest rate determined?
The interest rate on your student consolidation loan is determined by taking a weighted average of the interest rates on all loans to be consolidated and rounding up to the nearest 0.125% or 8.25%, whichever is less.
Is the interest tax-deductible?
Most people can deduct interest paid on federal student consolidation loans. Consult your tax advisor for more information.
How do I know what my student consolidation loan payment will be?
Try our consolidation loan calculator to get an idea of the monthly payments you can expect from a student consolidation loan.
How do I apply?
NextStudent makes it simple. Call a NextStudent Education Finance Advisor at (800) 299-4639 or begin the application process online. You’ll be able to download your preprinted online application through our secure servers the same day or have the application mailed to your home.
Federal Student Loan Holders
If you have federal college loans, such as Stafford student loans or PLUS parent loans, you can lower your monthly payments by as much as 60% and put more cash in your pockets with the federal consolidation loan program.
Apply online … now with Electronic Signature!
All Student Loan Borrowers
If you’ve already consolidated your federal college loans or have private student loans to refinance, you’re in luck. With the new NextStudent Private Consolidation Loan you can refinance all your student loans — even private college loans — at record-low rates that can put more cash in your pockets.
More About Federal Consolidation Loans
» Apply online and lock in at the lowest rate
» Before and After
» Eligibility
» Loan Amounts
» Rates, Fees, and Terms
» More About NextStudent Consolidation Loans
» NextStudent Custom Consolidation Loan Calculator
