Students receiving money from several different federal loans at the same time have the option of consolidating all of these loans into one big loan with one monthly payment.
By doing so, it can greatly simplify your financial planning, and can extend your payment deadline, allowing for lower monthly payments. Both the Federal Perkins and Stafford Loans are eligible for consolidation.
Always be cautious when choosing to consolidate. When you extend the length of your loan, you’ll be making more payments and paying more interest. Also, if you received any borrower benefits from your initial loans such as principal rebates or interest rate discounts, you might lose them by consolidating. Conduct a research and talk with your financial advisor to see if consolidating is the right choice for you.
You will need to get an application from the appropriate lender department if you decide to consolidate. You can apply to consolidate during your post-graduation 6-month grace period or anytime thereafter. The interest rates for consolidated loans are fixed, and never exceed 8.25%.