Category: Business OVERVIEWThe Federal Consolidation Loan Program allows a borrower to consolidate all or part of eligible outstanding federal student loans into one new loan. This allows a borrower to have one lender, one loan and one loan payment. Borrowers should be advised that by consolidating any federal student loans they will lose all current borrower benefits offered on those loans. BORROWER ELIGIBILITYAt the time of application, a borrower must be in a grace period or repayment status on all loans being consolidated. If the borrower has delinquent or defaulted loans, the borrower should contact the loan holder of those loans to find out if they are eligible for consolidation.
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