Top Questions about NextStudent Consolidation Loans*
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.
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?
Consolidation offers many benefits-even if you’re currently making your monthly 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 10% – 60%.
- You can save money by using your student loan payment savings to pay off high-rate debt, such as credit cards.
- 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 cost increase if I extend repayment to 30 years?
Extending the repayment period does increase total interest payments, since smaller payments are made over a longer period of time. However, there are no prepayment penalties for accelerating repayment, 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 PLUS loans with my student loans?
All loans must be under the same borrower's Social Security Number, thus parents cannot consolidate their PLUS Loans with their children's Stafford Loans, or vice-versa.
How is the interest rate determined?
The interest rate is determined by taking a weighted average of the interest rates on all loans to be consolidated and rounding up to the nearest 1/8 or a percent of 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 payment will be?
Try our consolidation loan calculator to get an idea of the savings you can expect from a 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 loans, such as Stafford and PLUS, you can lower your monthly payments as much as 60% and put more cash in your pockets with the Federal Consolidation Loan program. Rates are currently the lowest in history!
All Student Loan Borrowers
If you’ve already consolidated your federal 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 loans—at record-low rates that can put more cash in your pockets.
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