Frequently Asked Questions

 What is federal student loan consolidation?
Federal student loan consolidation is a loan you can borrow to combine your existing eligible federal student loans into a single loan. When you apply for a Federal Consolidation Loan, you are taking out a new loan to pay off all or a portion of your original eligible federal student loans. The Federal Consolidation Loan has a fixed interest rate and a repayment term of up to 30 years — depending on the total amount of your student loan debt.

Which loans are eligible for federal student loan consolidation?

The following loans are eligible for federal student loan consolidation:
• Federal Stafford Loan (both subsidized and unsubsidized)
• Federal Direct Loan (both subsidized and unsubsidized)
• Federal Perkins Loan
• Health Professions Student Loan (HPSL)
• Federally Insured Student Loan (FISL)
• Auxiliary Loan to Assist Students (ALAS)
• Federal Supplemental Loan for Students (SLS)
• National Direct Student Loan (NDSL)
• Health Education Assistance Loan (HEAL)
• Federal Parent Loans for Undergraduate Students (PLUS)
• Loan for Disadvantaged Students (LDS)

* These loans may already have low, fixed interest rates. Carefully consider whether to consolidate loans with already low fixed interest rates. Student loan consolidation may increase the interest rate charged on these loans and add to the total cost of your loans.

Please Note: You can consolidate a prior Federal Consolidation Loan into a new Federal Consolidation Loan only if you are consolidating at least one other eligible student loan.

Ineligible Loan

Your Federal Consolidation Loan can't include any non-federal student loans obtained through a bank, credit union, or other type of financial institution; loans from the institution or school you attended; loans made to you by a friend or family member; or consumer debt such as personal or automotive loans from your bank, credit union, or other financial institution. To determine if your student loans can be consolidated, refer to the list of eligible loans above.

Ineligible student loans that are in grace or repayment can be included as part of your total student loan debt. Your total student loan debt, not just the debt you're consolidating, is used to determine the length of repayment

Please Note: Federal Primary Care Loans (PCL) have a service obligation and can't be included in your Federal Consolidation Loan.

To verify information about your loans, or to locate information that you may be unsure of, check out What You'll Need for details about how to access your student loan information.

Which student loans are not eligible for federal student loan consolidation?
You cannot consolidate any non-federal student loans obtained through a bank, credit union, or other type of financial institution, loans from the institution or school you attended, loans made to you by a friend of family member, credit card or consumer debt, or automotive loans from your bank, credit union, or other type of financial institution. Also, Federal Primary Care Loans (PCL) has a service obligation and cannot be included in your Federal Consolidation Loan.

Why should I consolidate my eligible federal student loans?
There are a number of reasons why you may choose to consolidate your eligible federal student loans, including:

·        What are some reasons why I may not want to consolidate my eligible federal student loans?

·        If I am still in school, can I consolidate my eligible federal loans through federal student loan consolidation?
It depends on the status of the loan(s). Loans must be in their grace period or in repayment to be eligible for consolidation. As such, Federal Stafford and Federal Direct Loans that have an in-school status cannot be consolidated. However, Federal PLUS Loans enter repayment as soon as they are fully disbursed. Although you may be in school and your PLUS Loan may be in an in-school deferment status, it is eligible for consolidation while you are in-school.

  Can my federal student loans be consolidated with my spouse's federal student loans?
No. Due to federal regulation changes, spousal consolidation is no longer a consolidation loan option.

    What if I'm already in repayment? Should I consider federal student loan debt consolidation?
Even if you are already in repayment, you may want to consider consolidating your eligible federal student loans. Consolidation allows you to fix the interest rate on Federal Stafford and/or Federal Direct Loans borrowed before July 1, 2006. However, consolidation might not benefit borrowers with loans borrowed after July 1, 2006. Find out if consolidation is the right choice for you.

·        What is CLPS?
CLPS is a nonprofit organization with over 30 years of specialized experience in graduate and professional student lending. We offer Federal Stafford Loans with no origination fees, private loans with fees as low as zero, and repayment incentives on all loans, including Federal Consolidation Loans. We also provide materials and services to help students borrow wisely, manage their debt, and successfully repay their student loans.