Merging and Extending

If several servicers are handling your loans, each will require minimum payments. You may be able to merge or combine them to reduce the number of separate payments, without paying additional interest:

Loan Merging: This may be available for same-type loans (subsidized or unsubsidized Federal Stafford, SLS or PLUS) owned by the same lender or secondary market, even if different servicers hold them. This often is done automatically. If this is not the case for your loans, contact your holder/servicer to discuss your options.

Lender Buyout/Loan Repurchase: If different holders own your loans, you can request that one purchase your loans from the other. Contact each loan holder to determine individual policies.

You also may be able to lower your monthly payment by extending your repayment term. Federal Consolidation Loans can combine several loans and can be repaid over a period of 10-30 years.