Loan Consolidation

Depending on how long you attended college and the borrowing decisions you made along the way, you may end up with multiple loans and/or loan servicers. This can be complicated when making monthly payments and keeping all of your loan information straight.

Student loan consolidation combines multiple federal student loans into a single Direct Consolidation Loan, simplifying repayment with one monthly payment to a single loan servicer. While it can lower monthly payments by extending the repayment term, it doesn't necessarily reduce the interest rate. Additionally, extending the repayment period can increase the total amount of interest paid over the life of the loan. Any unpaid interest capitalizes, adding to the principal balance. It's crucial to weigh these potential drawbacks against the benefits before consolidating.

In order to qualify for a Federal Consolidation loan, it is necessary to possess multiple loans that can be consolidated. Consult your loan servicer to determine the most suitable option for your circumstances.

Learn more about loan consolidation on the Federal Student Aid website.

 

Loan Discharge and Forgiveness

Under certain circumstances, all or a portion of your federal student loan debt may be discharged or forgiven. Your loan, however, can’t be discharged just because you didn’t like your college or the program of study, or because you didn’t find a job after graduation.

Remember that your student loan is your obligation. Unless forbearance has been granted, you must continue to make payments until you receive written confirmation that discharge or forgiveness has been approved. There are several types of discharge and forgiveness and each one has specific requirements and guidelines. For further information, contact your loan servicer or visit StudentAid.gov.

 

Who do I contact about loan discharge or forgiveness?

If you think your loans are eligible for discharge or forgiveness and have questions, contact the OCAP (Oklahoma College Assistance Program) Compliance department:


Jaime Shelton
Senior Regulatory Compliance Specialist and System Services Coordinator/Ombudsman
Oklahoma College Assistance Program
A division of the Oklahoma State Regents for Higher Education
Phone: 405.234.4281