Options for consolidating student loans

The length of your repayment term on a federal consolidation loan will depend on the total principal balance of the loans you choose to consolidate.The chart below indicates the maximum repayment terms: To estimate your monthly payment view the consolidation chart or enter your loan amounts into a loan consolidation calculator.Consolidation companies and programs can offer several benefits in additional to simplifying the repayment process.Borrowers should thoroughly research the interest rates for their existing loans and any forgiveness or deferment benefits attached to their existing loans before consolidating loans.Student loan debt can be overwhelming, especially if the borrower has multiple lenders and both private and federal loans.Consolidation allows students to combine all their loans into a single loan, with one monthly payment to a single lender.Edu Loan Docs helps former students repay their federal student loans with customized repayment or loan forgiveness plans.

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It's important to keep in mind that there are distinct federal and private options for consolidating student loans.One company, called Pave and based in New York, essentially uses crowdfunding to buy out existing loans, which are then repaid based on the borrower’s income.Even without interest, Pave loans end up costing borrowers about the same as other loans because of fees—a ,000 loan, for example, costs ,212 to repay, compared to ,329 for a private loan with 7.32% interest—but the company allows more flexibility and forgiveness than most banks.As of July 1, 2010, all new student loans, including consolidation loans, must be made under the Federal Direct Loan Program (FDLP).A consolidation with FDLP will put all of your loans with one holder, the Department of Education.If you would like more information about a student loan consolidation with FDLP, please visit their website at

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