Federal Consolidation
Columbia University
College of Physicians and Surgeons
College of Dental Medicine
Paul S. Garrard
Founder and President, PGPresents, LLC
Independent Student Loan Consulting
November 2015
2015 PGPresents, LLC - All Rights Reserved
Federal consolidation
• Paying off multiple federal loans with one
new federal loan
• Federal government’s Direct Consolidation
Loan (DCL) only federal consolidation option
• Online application at www.StudentLoans.gov
• You consolidate with the government, but
you can now choose among four loan
servicers to process and service your DCL
Pros and cons
• Advantages
– Convenience of one loan servicer
– Helps maximize PSLF amount*
– May allow balance to be repaid with PAYE**
• Disadvantages
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–
–
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Partially negates aggressive repayment
Slightly higher rate
Loss of Grace periods if consolidate too early
Perkins, HPSL, LDS converted to unsubsidized
balance if included in consolidation loan***
* Converts non-Direct Loans to Direct Loan balance
** Assumes borrower eligible for Pay As You Earn
*** Health Professions Student Loans, Loans for Disadvantaged Students
Should you consolidate
•
You may be a candidate if
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–
–
•
You have multiple loan servicers
You have some non-Direct Loans and want to
maximize PSLF* amount
You’re interested in PAYE** for entire balance
You may not be a candidate
–
–
–
You are interested in aggressive repayment
You already have one loan servicer
You are not interested in PSLF or you are, but
all loans are Direct Loans
* Public Service Loan Forgiveness
** Pay As You Earn
Resources to help
• www.PGPresents.com
– See “Tips on Consolidation” on Home
Page (for Direct Consolidation Loan)
• www.StudentLoans.gov
– Online application for Direct
Consolidation Loan
Best wishes for every success
at Columbia and in your
health sciences careers!
PGPresents, LLC
Independent Student Loan Consulting
www.PGPresents.com
2015 PGPresents, LLC - All Rights Reserved