Federal Student Loan Consolidation

With a Chase Federal Consolidation Loan, you can combine all or some of your outstanding federal student loans into one new consolidation loan—even if you have multiple lenders or multiple types of student loans. Federal Consolidation loans are authorized by the Federal Family Education Loan Program (FFELP) which was established by Congress to help student borrowers manage their federal student loan debt.

By consolidating, you can choose a flexible repayment term and lock-in today's low interest rate for the life of your consolidation loan.

Reduce Your Monthly Payments

By extending your loan term or selecting one of our graduated repayment plans, you can reduce your monthly payments by as much as 45%. You should note that by extending your payments, your overall financial obligation may increase because you will be making payments (principal plus interest) for a longer period of time.

Interest Rate Information

The fixed interest rate on your Federal Consolidation Loan is calculated based on a statutory formula established by the federal government. We are required by law to use either the weighted average of the interest rates on your existing federal student loans, rounded up to the nearest one-eighth of a percent, or 8.25%, whichever is less.

You can consolidate any of the following loans:
(Combined federal student loan amounts must equal $20,000 or more)

• Federal Stafford Loans, unsubsidized and subsidized [including Guaranteed Student Loans (GSL)]
• Direct Stafford Loans, unsubsidized and subsidized
• Federal Supplemental Loans for Students (formerly Auxiliary Loans to Assist Students/ALAS and Student PLUS Loans)
• Federal Perkins Loans, formerly National Defense/National Direct Student Loans (NDSL)
• Health Professions Student Loans, including Loans for Disadvantaged Students (HPSL)
• Federal Insured Student Loans (FISL)
• Federal PLUS Loans (Parents and Graduate/Professional Students)
• Direct PLUS Loans
• Federal Consolidation Loans
• Direct Consolidation Loans
• Nursing Student Loans (NSL)

Note: You can consolidate an existing consolidation loan only if you are combining it with at least one other eligible loan.

Student Loan Consolidation Repayment Terms

The repayment term on a consolidated loan ranges from 12 to 30 years depending on the total amount of your student loans.

Note: You may always prepay your loan with no penalties at any time to reduce your total loan cost.

Student Loan Consolidation Repayment Options

You may choose one of several repayment options for your consolidation loan. The repayment term ranges from 12 to 30 years depending on the total amount of your student loans.

Level Repayment

A level repayment schedule means you pay equal monthly payments over the term of your loan. This is our standard and most popular repayment option.

Graduated Repayment Plan

This option allows for low, interest-only minimum payments for either the first two or four years of your repayment period. A level repayment plan is calculated for the remainder of the repayment term.

Income-Sensitive Repayment Plan

With this option the amount of your monthly payment is adjusted annually, based on your total monthly gross income. You must provide documentation that allows the lender to make a reasonable determination of what your payment amount should be.

Extended Repayment

Under an extended repayment schedule, you can repay your consolidation loan over a 25-year period on a level or graduated payment plan if you have FFEL loans in excess of $30,000. If you have loans in excess of $60,000 and wish to repay over a 30-year period, you should select one of the other repayment options.

Applies to new borrowers after October 7, 1998