Loan consolidation
Q. Which loans can be consolidated?
A. Only federal loans are eligible for consolidation. The most common federal loans include Stafford Loans (both Subsidized and Unsubsidized), Grad PLUS, Perkins, Federal Nursing, Health Professions, and Primary Care Loans.
Q. When can I consolidate my loans?
A. You can consolidate only when you are in your grace period or in repayment. You cannot consolidate while you are actively enrolled in school.
Q. What are the advantages of consolidating my loans?
A. For students who have Stafford Loans at a variable interest rate, consolidation allows students to have a fixed rate on their loans for the life of the loan. Depending upon the amount of debt, consolidation allows students to have additional time to repay their loans. For example, lenders will offer students with at least $60,000 in loan debt to repay over a 30 year period.
Q. How is the interest rate calculated for consolidation loans?
A. Lenders use the weighted average of the current interest rate, rounded up to the nearest 1/8 of one percent to calculate the new rate.
Q. If my loans are already at a fixed rate, should I still consolidate?
A. For students who have borrowed federal loans through several different lenders, it may be worthwhile to consolidate all loans for the ease of repayment (single billing statement and one payment).
If all of your loans are through a single lender, it may be in your best interest not to consolidate, but rather request Extended Repayment from your lender.Extended repayment gives students up to 25 years to repay their loans, thus saving students 5 years worth of interest payments.
Q. Who should I contact if I’m considering consolidation vs. Extended Repayment?
A. Creighton University encourages students to contact their Stafford Loan lenders to see which option would be best. Lenders are able to run calculations to compare both situations, so you can make an informed decision.
Q. Where can I find my Stafford Loan lender?
A. You can find your lender information on your Student Self Service web page. Follow the “Loan History” link.