If you have several education loans — including any in default — you can combine those loans into one new loan with one monthly payment. The benefit to consolidation is removing your account from default. Any borrower with a FFEL loan or any other eligible education loan in default is eligible.

Various repayment plans are available:

  • Standard — a fixed monthly repayment schedule.
  • Graduated — you can request a lower monthly payment now that will increase as you make more money over the years.
  • Income Sensitive Payments — your monthly payment will be set by how much money you make, instead of a flat amount.
  • Extended - If you took out all your FFEL loans after 10/8/98 and you are consolidating FFEL loans in excess fo $30,000, you can have up to 25 years to repay your consolidation loan instead of the normal 20-year term.

You may apply to any lender participating in the Consolidation Loan Program. Keep in mind when you consolidate, collection costs will be added to the principal balance of the loan you’re consolidating.

For more information, contact HESC at 1-866-991-4372. The Rehabilitation Program is another opportunity to have loans removed from default, repair damaged credit, and to become eligible for student financial aid.