Generally, borrowers may be eligible for Federal Family Educational Loan Program (FFELP) consolidation if they meet the following conditions:

·        The borrower has student loans totaling more than $7500 with more than one lender and would like a repayment term that is longer than 10 years;

·        If the borrower has delinquent or defaulted loans, satisfactory repayment arrangements have been made with the holder of the loans prior to consolidation

·        Married couples if they agree to each be responsible for the entire loan debt regardless of any change in their marital status (loans can be discharged due to death or disability only if both individuals are affected and qualify).

The length of the consolidation loan repayment schedule will vary from 10-30 years based on the amount of student loan debt and borrowers may have the option of choosing among several different repayment options. Examples of repayment options include: standard monthly payments; graduated repayment; and income based repayment.

Standard Monthly Repayment Plan

The standard plan is good for you if you can handle higher monthly payments because you'll repay your loans more quickly. Your monthly payment under the standard plan may be higher than it would be under the other plans because your loans will be repaid in the shortest time. For the same reason - the 10-year limit on repayment - you may pay the least interest.

Graduated Repayment Plan

Payments start out low and increase every two years. The length of your repayment period will be up to ten years. If you expect your income to increase steadily over time, this plan may be right for you. Your monthly payment will never be less than the amount of interest that accrues between payments. Although your monthly payment will gradually increase, no single payment under this plan will be more than three times greater than any other payment.

Income Based Repayment (effective July 1, 2009)

Monthly payment will be based on your income during any period when you have a partial financial hardship. Your monthly payment may be adjusted annually. The maximum repayment period under this plan may exceed 10 years. If you meet certain requirements over a specified period of time, you may qualify for cancellation of any outstanding balance of your loans.