Think Twice Before You Consolidate – See Why

Federal loan consolidation is an option that may help you manage repayment of your federal student loans, particularly if you still have Federal Stafford/Direct Loans with variable interest rates. But, consolidation may not be right for you, particularly if you only have federal student loans with fixed interest rates. You may be able to save money both in terms of your monthly loan payment and in the total amount paid if you do not consolidate your fixed rate federal student loans.

There are three primary reasons why you should weigh the benefits and costs before rushing into consolidation.

* First, Federal Stafford/Direct Loans first disbursed on or after July 1, 2006, have fixed interest rates. Thus, the fixed interest rate structure of the Federal Consolidation Loan provides no advantage if you have these new fixed rate loans.
* Second, many graduate/professional student borrowers likely now qualify for the Extended Repayment option on their Federal Stafford/Direct and Federal PLUS loans. That option provides a 25-year repayment period if you have more than $30,000 in eligible federal student loan debt and first borrowed an eligible loan on or after October 7, 1998. It allows you to reduce your monthly loan payment without having to consolidate.
* Most importantly, Access Group offers on-time payment incentives on Federal Stafford and Federal PLUS Loans that are more beneficial financially than those offered on consolidation loans.

Federal Student Loan Consolidation

Federal Student Loan Consolidation...
Why should YOU consolidate?

• Fixed Interest Rates
• Lower Monthly Payments
• Money-Saving Payment Incentives
• Only One Payment Each Month
• New or Renewed Deferments

Everyone has his or her own reasons for consolidating. The reasons listed above are just a few reasons why you may consider federal student loan consolidation.

Even if you didn't borrow your federal student loans through Access Group, you may be able to consolidate with us and take advantage of low interest rates, and our money-saving payment incentives — with no minimum loan balance required.

You can choose which of your loans you want to include in your Federal Consolidation Loan; you can also choose to consolidate your undergraduate loans while you are in graduate school; you can even choose to consolidate only a portion of your eligible loans.

With recent changes to the Federal Loan programs, consolidation may not be beneficial for you.

The choice is yours ... what will you choose?