Federal Student Loan Consolidation: FAQ Part 2

Here are some more commonly asked questions on federal student loan consolidation:

1. Can I consolidate with my spouse?
No, this is no longer permitted.

2. If I consolidated my student loans in the past, can I consolidate them again?
You can reconsolidate your student loans if you have new student loans that weren’t included in the original consolidation, if you have multiple student loan consolidations from different lenders.

3. How is a student consolidation loan repaid?
The first payment on a federal student consolidation loan is typically due within a couple months from the date it was dispersed. Typical repayment choices on this student loan include standard payments (fixed monthly payments over a fixed period of time), graduated payments (your payments gradually increase over the years), income-sensitive payments (your payments will vary based upon your annual income at the time), and extended payments (if your student consolidation loan is a large amount of money, it can be repaid over 20 to 30 years, depending on the amount).

4. Will I be charged any fees to consolidate federal student loans?
No.

5. Is there a credit check required to consolidate federal student loans?
There is not, as your federal student loans are guaranteed by the government. In fact, student loan consolidation should actually improve your credit rating!

6. Are there any fees or penalties for making early payments?
No, you will never be penalized for making early payments on federal student consolidation loans. Remember, the government wants their money back! Additionally, your early payments might be interest-free (every dollar beyond your required monthly payment goes towards just paying off the principle)

7. Should I continue making payments on my current student loans while my student loan consolidation application is being process?
Yes; you should continue to do so until you are notified that your current loans have been paid off through the consolidation process. Since student loan consolidation can take up to 30 to 90 days, you do not want to risk falling behind on payments.