Using automatic payment ensures that on-time payments will be made; this option should be considered by every borrower entering loan repayment.
Discounts reduce the amount of interest you pay over the life of the loan.
Student borrowers may consolidate, or refinance, their federal student loans, including Direct, Stafford, and Perkins loans, into a federal consolidation loan. There are two main reasons borrowers decide to consolidate their federal loans: a fixed interest rate and lower monthly payments.
Other reasons include the convenience of having just one loan with one monthly payment and preventing one from defaulting on one's loans.
Student borrowers may be able to reduce their federal consolidation loan interest rate by an extra 0.25 percent by electing to make their monthly payments through an automatic electronic debit from a bank account.
This means that you authorize the payments to be made from your checking or savings account.
Information about federal loan consolidation may be found at log in using your FSA ID, and click on the Repayment & Consolidation tab.