| If
you have taken out more than one loan to finance your education,
loam consolidation makes it possible to pay them all basic using
one repayment plan. (PLUS loans are not eligible for consolidation.)
A loan consolidation program is available to students having
loans totaling at least $5,000. Before loans can be consolidated,
the student must be in repayment or in the grace period between
graduation and repayment.
Loan consolidation allows eligible lenders
to pay off existing student loans and create one new loan.
Under consolidation a student can stretch repayment up to
a maximum of 25 years, with smaller monthly payments, depending
on the total amount to be repaid. Interest on the new loan
will be 9 percent or more, depending on interest rates of
the loans consolidated.
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