If you’re holding more than one student loan, you may want to consider consolidating your loans. Loan consolidation combines the balances of your eligible federal student loans into one new loan with a new fixed interest rate, new terms, new conditions, and only one monthly payment.

Consolidation is not for everyone. You need to consider your current loans – amounts, interest rates, disbursement dates, repayment incentives – as well as the terms of your consolidation loan – how it will affect the amount of interest you’ll owe and your options for deferment, forbearance and loan forgiveness.
   
Before consolidating your student loans, contact your lender to inquire about all your options. And feel free contact the Office of Financial Aid at (909) 621-8055 with any questions about loan consolidation.
   
Learn more about student loan consolidation:

Who can consolidate?    
Why consolidate?    
How do you consolidate?
How are consolidation loans different?    

Who can consolidate?    
Federal student loan consolidation is available for students to obtain a new federally guaranteed loan to repay all or part of existing eligible federal loans. While not all loans are eligible for consolidation, the following federal loans are:

• Federal Stafford Loans
• Federal Perkins Loans
• Federal Parent Loans for Undergraduate Students (PLUS) Loans
• Other Consolidation Loans
• Health Professions Student Loans
• Health Education Assistance Loans (HEAL)
• Loans for Disadvantaged Students    

HMC loans and loans from other colleges, banks, or family members can’t be consolidated into the federal consolidation loan program. Alternative loan consolidation may be available from your lender but may not contain the same loan conditions as listed here under the federal consolidation loan. Contact your lender for further information regarding alternative loan consolidation.

Why consolidate?
With loan consolidation, you may be able to extend your repayment period, lower your monthly payments, and lock in a fixed interest rate. You may find loan consolidation lowers your monthly payments and simplifies student loan repayment. There are also no origination or guarantee fees for the consolidation loan.

When should you consolidate?
You can consolidate your student loans when you are in your grace period or when you are in repayment of each loan you wish to consolidate. We do not recommend that you consolidate before the end of your grace period, as consolidation loans do not carry a grace period.







How do you consolidate?
If you have a Federal Stafford Loan or Federal PLUS loan, contact your lender about the consolidation loan program(s) available to you. If you have borrowed Direct Stafford Loans at another institution, you may also consolidate under the Federal Direct Student Loan program. Learn more at the Federal Direct Student Loan Program site.

How are consolidation loans different?
Consolidation loans are different from your awarded federal student loans in several ways:

• the interest on any new consolidation loan is a fixed rate, determined by the weighted average of all loans being consolidated, rounded up to the nearest one-eighth of one percent. The new interest rate cannot be higher than 8.25 percent.
• Consolidation loans do not carry the same benefits as other federal student loans.

Consult with your lender regarding which Federal Stafford Loan benefits you may lose (such as loan forgiveness/cancellation and loan repayment incentives).

Alternatives to Loan Consolidation
Before consolidating your student loans, contact your lender to inquire about other options available which may be more appropriate for you. Your current lender may do the following:

• Offer another repayment option such as graduated repayment, income-sensitive repayment, or the extended plan which will help lower your monthly payments
• Grant a deferment or forbearance for temporary relief of student loan payments,
• Purchase loans held by other lenders to combine all your loans with one lender