Loan Consolidation - Eligibility |
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Fully disbursed federal education loans in a grace, deferment or repayment status are eligible for consolidation. To be eligible for a VSAC consolidation loan you must be a Vermonter or an existing VSAC borrower.
Eligible Loan Types
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Federal subsidized Stafford Federal unsubsidized Stafford Supplemental Loan for Students (SLS) Federal PLUS (for parents) Federal PLUS (for graduate/professional students) Federal Consolidation Federal Direct subsidized Stafford Federal Direct unsubsidized Stafford |
Federal Direct PLUS (for parents) Federal Direct PLUS (for graduate/professional students) Federal Direct Consolidation Perkins Loan (NDSL) Health Professions Student Loan (HPSL) Federal Nursing Student Loan Federal Insured Student Loan (FISL) |
Don’t know which loan types you have?
Visit the National Student Loan Data System (NSLDS) website at www.nslds.ed.gov. You will need a Personal Identification Number (PIN) from the U.S. Department of Education; you may request a PIN online at www.pin.ed.gov.
Don’t see your loan type on the list above?
You may have a private (also called “alternative”) loan. Private loans are not eligible for federal loan consolidation.
- If you have VSAC private loans, contact us to discuss options to reduce your monthly payment amount(s).
- Enter all of your outstanding private loans in Section D.2 of the Consolidation application — this will help ensure that your Consolidation loan receives the maximum repayment term.
Wondering whether you should consolidate your Perkins loan(s)?
Here’s some information that may help:
- Perkins loans have a 5% fixed interest rate – if some/all of your other loans have lower interest rates, the 5% interest rate may increase the weighted average interest rate of your Consolidation loan. Calculate your weighted average interest rate.
- Perkins loans are subsidized, meaning they are interest-free during periods of enrollment, grace, or deferment. Unlike subsidized Stafford loans however, Perkins loans become unsubsidized when consolidated.
- Once consolidated, any Perkins loan forgiveness benefit is forfeited.
If you choose not to consolidate your Perkins loan, be sure to reference it in section D.2 of the Consolidation Application.
Are loans in default eligible for consolidation?
Loans in default may be eligible for consolidation if you have completed the satisfactory repayment arrangements required by your loan holder. Contact the holder of your defaulted loan for specific information.
Can I consolidate my loans more than once?
Previously consolidated loans can be reconsolidated provided you are adding new, fully disbursed federal loans.
Learn more
- What is consolidation?
- What are the pros and cons of consolidating?
- Should I apply during my grace period?
- What will my repayment terms be?
- Other frequently asked questions
- Return to main Consolidation page
