Consolidation

Should you consolidate?

If you have multiple loans with different lenders, loan consolidation may allow you to combine those loans into a single loan.  For some borrowers, consolidation can mean the difference between manageable and unmanageable debt. While consolidating your education loans may make your monthly payment more affordable, you may pay more interest over the life of the loan, unless you consolidate at a substantially lower interest rate. If you have borrower benefits or other advantageous terms on your existing loans, you may not be able to retain those when you consolidate. So, the answer is that there are plusses and minuses, and you should carefully consider all your options in making your decision about consolidation.

Why consolidate?

• You have FFELP loans with different lenders
• Your combined monthly payments are too high
• A lower interest rate is offered on the consolidation loan
• You have education loans with multiple terms and conditions

What should you consider?

• What will my interest rate be?
• If the interest rate is variable, is there a maximum rate interest cap?
• How long will it take me to repay my loan?
• Do I currently have borrower benefits that I will lose if I consolidate? 
• Is there a penalty for paying off my loan prior to the contracted term?
• Will I have to give up favorable terms and conditions such as forgiveness options or deferments and forbearances?
• Are there penalties for late or missed payments?

 Does ACPE offer loan consolidation?

• The AlaskAdvantage Alternate Consolidation Loan is available for your current ACPE alternative loans. 
• Due to changes in the industry brought about from legislation combined with the credit market deterioration, ACPE has suspended offering the AlaskAdvantage Federal Consolidation Program.

What options do I have if I want to apply for a federal consolidation loan during the period that ACPE has suspended participation in this program?

Several options are available. They include:

1.      Consolidate with another participating federal lender.

2.      Consolidate with the Federal Direct Loan program.

3.      Consolidate your non-AlaskAdvantage loans with another lender or with _____Direct Loans, but withhold your AlaskAdvantage loans in order to retain the _____borrower benefits on those loans.