Consolidating federal loans

20-Apr-2020 07:46

The consolidation loan is a new loan, so the borrower needs to complete an application and a promissory note.The borrower lists all of the various loans to be consolidated on the application.

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Loan forgiveness is available in the event of the death or total and permanent disability of the student who borrowed an underlying loan that has been consolidated.You may call the Loan Consolidation Center at 800.557.7392 with any questions after you submit your application. Discover Card is serious about safeguarding your personal information online.Most of the current deferment and forbearance provisions of Direct student loans are retained after being consolidated.

Specific deferment options include: Repayment terms range from 10 to 30 years, depending on the amount being refinanced.

Keep in mind that extending your repayment term may increase the amount of interest you pay over the life of the loan.

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