How many times can student loans be consolidated?
You can consolidate a consolidation loan only once. In order to reconsolidate an existing consolidation loan, you must add loans that were not previously consolidated to the consolidation loan. You can also consolidate two consolidation loans together. But you cannot consolidate a single consolidation loan by itself.
You can have more than one debt consolidation loan at a time, but you'll need to follow your lender's guidelines. Some lenders limit the number of loans you can have at one time, or how soon you can apply for a second loan after receiving the funds from the first.
One such strategy, the "Double Consolidation" process, enables parent borrowers to, in effect, consolidate their Parent PLUS loans twice in order to access more beneficial repayment plans (including the newly available SAVE Plan), which can potentially cut loan payments by more than half.
Your monthly payment may go down, but you may have to pay longer. If you have unpaid interest, your principal balance will go up. Your new consolidation loan will generally have a new interest rate. You can lose credit for your payments toward income-driven repayment (IDR) forgiveness.
Any borrower with ED-held loans that have accumulated time in repayment of at least 20 or 25 years will see automatic forgiveness, even if the loans are not currently on an IDR plan. Borrowers with FFELP loans held by commercial lenders or Perkins loans not held by ED can benefit if they consolidate into Direct Loans.
Success with a consolidation strategy requires the following: Your monthly debt payments (including your rent or mortgage) don't exceed 50% of your monthly gross income.
Student loan consolidation has many benefits for student loan borrowers. For example, if you currently have federal student loans with multiple loan servicers, consolidation can greatly simplify loan repayment by giving you a single loan with one monthly bill.
You can consolidate a consolidation loan only once. In order to reconsolidate an existing consolidation loan, you must add loans that were not previously consolidated to the consolidation loan. You can also consolidate two consolidation loans together. But you cannot consolidate a single consolidation loan by itself.
In addition, parent PLUS loans aren't eligible for some other types of federal student loan forgiveness programs. To get around this, some borrowers go through two or more federal consolidations to hide the origin of the loans, then request an IDR plan. This process is often called the double consolidation loophole.
A Direct Consolidation Loan allows you to consolidate (combine) multiple federal student loans into one loan with a single monthly payment. Use the application below to consolidate your loans.
Can my student loans be forgiven if I consolidated?
If you consolidate loans other than Direct Loans, consolidation may give you access to forgiveness options, such as income-driven repayment or Public Service Loan Forgiveness (PSLF). If you consolidate, you'll be able to switch any variable-rate loans you have to a fixed interest rate.
Borrowers who consolidate loans will receive credit for a weighted average of payments that count toward forgiveness based on the principal balance of the loans being consolidated. They will also automatically receive credit toward forgiveness for certain periods of deferment and forbearance.
Do student loans go away after 7 years? While negative information about your student loans may disappear from your credit reports after seven years, the student loans will remain on your credit reports — and in your life — until you pay them off.
If you have federal student loans and are making payments under an income-driven repayment (IDR) plan, you may be able to have your loans forgiven after 20 years.
IDR Forgiveness
Under all IDR plans, any remaining loan balance is forgiven if your federal student loans aren't fully repaid at the end of the repayment period (either 20 or 25 years). But the length of your repayment period depends on which plan you're on.
Income-Driven Repayment (IDR) Forgiveness
If you repay your loans under an IDR plan, any remaining balance on your student loans will be forgiven after you make a certain number of payments over 20 or 25 years—or as few as 10 years under our newest IDR plan, the Saving on a Valuable Education (SAVE) Plan.
The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings.
| Generation | Average total debt (2023) | Average total debt (2022) |
|---|---|---|
| Millenial (27-42) | $125,047 | $115,784 |
| Gen X (43-57) | $157,556 | $154,658 |
| Baby Boomer (58-77) | $94,880 | $96,087 |
| Silent Generation (78+) | $38,600 | $39,345 |
The average American owed $103,358 in consumer debt in the second quarter of 2023, the latest data available, according to credit bureau Experian.
This is because a lowered credit score can make it more difficult to obtain credit and other loans in the future. In the case of consolidating your student loans, the good news is that this process can actually have a very positive impact on your credit score and it can do so almost immediately after your consolidate.
What credit score is needed to consolidate student loans?
Borrowers who want to refinance student loans will likely need good or excellent credit to qualify. According to Experian, one of the three main credit bureaus, 670 is generally the base credit score that lenders require to be eligible for student loan refinancing.
Organize your student loan debt into a single, simple monthly payment. Secure a lower interest rate. Switch from a variable to fixed interest rate, or vice versa. Find a lender with better repayment options or borrower protections.
Here are some of the reasons the total amount you owe on a loan may have increased: Unpaid interest may have been capitalized at the end of a period of deferment or forbearance or under certain other circ*mstances (capitalization is the addition of unpaid interest to the principal balance of a loan).
We don't offer consolidation or refinancing at this time. We recommend that you consider the impact that these actions may have on your student loan benefits and Total Loan Cost.
Payments are fixed and made for up to 10 years (between 10 and 30 years for consolidation loans). Monthly payments can be higher than other plans, but total interest paid is usually lower and length of repayment is usually shorter.
