Hello, FA Guru!

I have 20-some-odd Federal Stafford loans that I would like to consolidate. All of my loans are currently in 6 or 12 month periods or forbearance. Will consolidating these loans negate the forbearance status? And if so, is it possible to apply for deferment/forbearance before making a first payment on my consolidated loan? I am currently unemployed and am unable to make even small payments on my loans.

Thanks in advance for your time and help

Hi there,

In theory, that should work, yes. Since consolidation essentially pays off the existing loans and makes a new master one, your eligibility for the deferments should be reset.

You may have to increase the repayment term of your loans so that you can afford the monthly repayment. Based on your current loans’ interest rates and terms, this could cause you pay less per month but more in total over the course of the debt consolidation loan.