Reconsolidate Student Loans Facts

Everything you need to know about how to reconsolidate student loans is here. We'll tell you what loans are eligible, when to consolidate, and explain rates and terms.

Eligible Student Loans

To reconsolidate student loans with a federally-backed program, your loans must be eligible. Eligible loans include:

• Stafford loans
• Parents PLUS/Grad PLUS loans
• Perkins loans
• Consolidation loans (when included with other eligible loans)
• Supplemental Loans for Students (SLSs)
• Health Profession Student Loans (HPSLs)
• Loans for Disadvantaged Students (LDSs)
• Usually, to reconsolidate student loans, your loans must total at least $5,000

When to Reconsolidate Student Loans

You can reconsolidate student loans at any time, but there are better times to do this than others. Ideally, you'll want to reconsolidate student loans in your grace period. However, students can also consolidate during periods of deferment, repayment, or forbearance. For parents with PLUS loans, you can reconsolidate student loans at any time once the loans have been disbursed fully. This rule applies regardless of your child's enrollment status.

Rates & Terms

When you reconsolidate student loans, you will receive a consolidation loan with specific rates and terms. Typically, your rate is calculated by taking the weighted average of the loans to be consolidated and then rounding that up to the nearest eighth of a percent. Thus, consolidation loan rates are tied to the original rates on your student loans. Federal student loan consolidation programs usually also have a maximum interest rate that lenders cannot exceed. As far as terms go, you will begin repayment immediately after your consolidation loan is disbursed. With most lenders, you will receive a small interest rate deduction if you sign up for automatic withdrawal payments from your checking or savings account. Consolidation loans usually also come with forbearance and deferment benefits.

For more information about private student loans, see our Private Student Loan Reconsolidation page.