What is Consolidation? Consolidation is the combining several education loans into a new loan with a new payment schedule and interest rate.
Loan Designed for: Parents or Students with Federal Student Loans. You may not combine Student, Parent or Spouses loans.
Eligibility: You must not be in default on any Federal Student Loans. You must have a Federal Education Loan balance of $7,500 or more. Student borrowers must be in grace period, repayment status, or enrolled at less than half-time status. Parent borrowers may qualify regardless of Student enrollment status.
Interest Rate: The Federal Consolidation Loan has a fixed interest rate. In accordance with Federal regulations, the interest rate on your consolidation loan will be calculated using the weighted average of your current loans, rounded up to the nearest 1/8 th of 1%. The weighted average is calculated on the true interest rates of the loans, and does not consider any borrower benefit, special rates, discounts, or other incentives.
Repayment Term: The repayment of a Federal Consolidation Loan begins within sixty (60) days after disbursement is made. There is no grace period; borrowers in the original six (6) month grace period forfeit the remainder of said grace period when a consolidation disbursement is made. There is a minimum payment of $50 per month.
Consolidated Amount
Years to Repay
$7,500 - $9,999
12 Years
$10,000 - $19,999
15 Years
$20,000 - $39,999
20 Years
$40,000 - $59,999
25 years
Over $60,000
30 Years
Are there any fees to consolidate Federal Student Loans? No. Lenders are not allowed to charge for consolidating Federal Student Loans
Having trouble locating all of your Student Loans?
You can access all of your Federal Loan info at www.nslds.ed.gov
To find out more about consolidation or apply for a consolidation loan through the Direct Lending program, visit www.loanconsolidation.ed.gov
Loans and the AAA Student Lending Program offered through AAA Southern New England Bank. Rates and terms are subject to change or termination without notice. Loans subject to credit approval and Federal government eligibility requirements. AAA Student Lending Program Member Benefits are for AAA Southern New England members only and are subject to change or termination without prior notice. Other loans and terms available.
Our Territory: AAA Southern New England proudly serves members in Rhode Island & the following counties in Massachusetts:
Bristol, Middlesex, Worcester, Berkshire, Plymouth, Suffolk, Barnstable, and Norfolk
Copyright 2008. AAA Southern New England
