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Loan Consolidation

Consolidation loans are designed to make student loan repayment easier. They allow the borrower to combine existing eligible federal student loans into one new loan. Federal Perkins and Nursing Loans, Health Profession Student Loans (HPSL) and Loans for Disadvantaged Students (LDS) are eligible for consolidation. Vanderbilt institutional loans cannot be consolidated in a federal loan consolidation program. However, there are now a few companies that offer consolidation loans that can include institutional and private education loans.

The advantage to consolidation is that it may extend the loan repayment period, thereby lowering the monthly payments. However, the extended repayment term will mean that the borrower will pay more interest over the life of the loan. A consolidation loan can be a good alternative for borrowers who owe a large sum of money on several student loans with high monthly payments, have student loans with several different lenders, or have several loan due dates.

The following are some of the student loans in addition to the Federal Perkins, Federal Nursing, HPSL and LDS Loans that are eligible for federal loan consolidation:

  • Federal Stafford Loans (subsidized and unsubsidized)
  • Federal Graduate PLUS Loans
  • Federally Insured Student Loans (FISL)
  • Federal Supplemental Loans for Students (SLS)
  • Health Education Assistance Loans (HEAL)
  • Federal Consolidation Loans

Federal Parent PLUS Loans taken out on a dependent's behalf can be consolidated with existing eligible student loans of that parent. They cannot be consolidated with the dependent's student loans.

For more details on consolidation, visit the Direct Consolidation Loan website.


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