Rates and Terms*
Please be aware that due to current conditions in the student loan market in particular and in the financial sector in general, NextStudent is not currently able to accept any new PLUS, Grad PLUS, Stafford, or Federal Consolidation Loan applications. However, you may be able to apply for these federal student loans from one of our trusted partners. Click here for more information.
The rate on your Federal Consolidation Loan will be based on the weighted average of the interest rates (before any lender discounts) on the loans you’re consolidating, excluding Health Education Assistance Loans (HEAL). The weighted average is rounded up to the nearest 0.125%, with a maximum rate of 8.25%. This rate will be fixed for the life of your consolidated loan.
Fees
By law, lenders cannot charge an application fee for Federal Consolidation Loans. This law also applies to loan guarantors.
Terms
You may have up to 30 years to repay your consolidation loan, depending on the total outstanding balance of your student loans. Extending your repayment period can increase your total interest paid, since you’re making smaller principal payments over a longer period of time. But consolidation loans have no prepayment penalties, so you can always choose to accelerate repayment without incurring additional charges.
Outstanding Education Debt Repayment Period $20,000 – $39,999 20 years $40,000 – $59,999 25 years $60,000+ 30 years
Federal Consolidation Loans offer several repayment options, including extended, graduated and income-sensitive repayment, as well as deferment and forbearance benefits.