Federal Consolidation Loans

Federal Stafford , Grad PLUS , and  PLUS Loans are government sponsored low-interest loans available to students and parents through a private lender such as a bank, credit union, or savings and loan associations.

In light of the increase in the interest rates charged as well as some changes in the terms of the loan program, we encourage our new graduates, alumni, and parent loan borrowers to learn more about their options under the Federal Consolidation Loan Program.

Changes that are effective for the 2006-2007 academic year:

  • Elimination of the "early repayment" consolidation option for Stafford Loans;
    • Consolidation is permitted only when loans are in a grace or repayment status (including deferments and forbearance)
    • This does not affect Federal Perkins Loans
  • Elimination of spousal consolidation
  • Elimination of the "single holder" rule
  • Mandates parallel terms between the FFELP and Direct Loan Consolidation Loan Programs (except as explicitly noted)

Due to issues in the current credit market, several major lenders have chosen to withdraw from offering Federal Consolidation Loans effective in the 2008 spring semester. Students interested in consolidating their loans MAY need to consider consolidating their loans through the Federal Direct Loan Program.

The 22 minuite webcast, Making Sense of Loan Consolidation, is one of many features offered through Mapping Your Future. They have also posted updated information on their web site.

Lender Information:

We would encourage all borrowers to review the Department of Educations's Consolidation Checklist before making a final decision about loan consolidation.

Students can choose to use any lender. By law, staff members in the Office of Scholarships and Financial Aid can not make this important personal decision for any student. Families who are new to the loan consolidation may want to review the following information:

"Who Is My Lender?"

Under provisions of the Ensuring Continued Access to Student Loans Act, lenders have the option to "PUT" (sell) loans to the U.S. Department of Education (DOE).  Lenders must notify borrowers if their loans have been sold to the Department of Education. 

 We have been notified by the following lenders that they intend  to sell loans to the Department of Education:

Chase *  Citibank * edamerica*  Key Bank * Total Higher Education ("THE") *  Wachovia Education Finance  *  Wells Fargo *  All Sallie Mae lenders

YOU WILL BE ABLE TO CHECK IF YOUR LOAN HAS BEEN SOLD BY CHECKING YOUR RECORDS ON THE NATIONAL STUDENT LOAN DATA SYSTEM FOR STUDENTS

Contact information for the Department of Education's Loan Servicing Center:

Borrower services are available 8:00 a.m. to 11:00 p.m. EST, Monday through Friday

Contact information for Department of Education Loans Serviced through Sallie mAE

  •  By Phone: 1-800-722-1300
  •  By Mail: Sallie Mae - Department of Education Loan Services, P.O. Box 9635, Wilkes-Barre, PA 18773-9635
  • ED Monthly Bills: Sallie Mae- Department of Education Loan Services, P.O. Box 740351, Atlanta, GA 30374-0351
  • Checks should be made payable to: Sallie Mae - Department of Education Loan Services

Please carefully review all correspondence that you receive from a lender. Several members of Congress are currently investigating lenders who have been accused of deceptive marketing tactics.

Other Resources

Updated October 20, 2009