What is a Federal Consolidation Loan?
Designed for borrowers with at least $4,000 in outstanding loans, a Federal Consolidation Loan refinances one or more existing student loans into a new loan with a low monthly payment, variable interest rate, and an extended repayment period.

Consolidation Loans are an excellent option for borrowers who have loans with more than one lender. Consolidating can eliminate the need to make multiple payments to multiple lenders.

What Types of Loans Can be Consolidated?

• Federal Stafford Loans
• Federal PLUS Loans
• Federal Direct Loans
• Federal Supplemental Loan for Students
• Federal Perkins Loans
• Federal Health Professional Student Loans (HPSL)
• Federal Nursing School Loans (NSL)
• Federal Loans for Disadvantaged Students (LDS)
• Federal Insured Student Loans (FISL)

Interest Rate and Fees
The fixed interest rate is based on the weighted average of the interest rates for the loans to be consolidated (rounded up to the nearest 1/8th of 1%). If the borrower is consolidating variable rate loans, the rate in effect at the time the consolidation loan is made will be used to calculate the rate.

A weighted average is determined by assigning a “weight” based on the proportion of debt you owe at each interest rate.

There is no fee to consolidate your loans.

Borrower Benefits — Up to a 1.25% interest rate reduction!
Borrowers who receive a PNC Bank Consolidation Loan are eligible to receive a 0.25% interest rate reduction if they elect to have their monthly payments automatically deducted from their checking or savings account. An additional 1% interest rate reduction is available for borrowers who make their first 36 payments on-time (within the first 15 days of the scheduled due date).

To maintain the interest rate reduction benefit, all payments must be made on time (within 15 days of the payment date) and must be automatically deducted from a bank account. If a payment is late or the automatic payment deduction is stopped, the rate reduction benefit is lost.

How to Apply
Borrowers may apply for a Federal Consolidation Loan during their grace period, once they have entered repayment, or during periods of deferment or forbearance. Apply Now!

For more information, contact our customer service center to speak with an education loan specialist at 800-762-1001, Monday through Friday, 8am to 6pm Eastern time.