Health Professions Student Loans (HPSL) are long term, low interest loans offered to full-time students working towards becoming doctors of podiatric medicine, dentistry, optometry, and veterinary medicine. Students who are actively studying towards a Bachelor or Doctor of Science degree in pharmacy are eligible as well. These loans are eligible for student loan consolidation under the FFELP as well as the Direct Loan Consolidation Program.

Consolidating Health Professions Student Loans

For most students, with federal student loans, deciding to consolidate is a no-brainer. When interest rates are low, it is logical and even financially sound to combine multiple student loans into one big loan and reap the benefits of lower interest, lower payments, and extended repayment options. However, when it comes to consolidating loans like the HPSL, the decision becomes a bit more complicated.

Health Professions Student Loans carry a fixed five percent interest rate and are interest free while the student is enrolled in school. Once the borrower consolidates these loans, he or she automatically forfeits the interest free status. Furthermore, interest does not accrue on Health Professions Student Loans during deferment or in a grace period, but interest does accrue during deferment and grace periods on consolidation loans.

Health Professions Student Loan borrowers do not get to keep the deferment benefits applicable to that loan when they consolidate. However, they gain the deferment benefits applicable to the student loan consolidation program. It is best to weigh the benefits and the disadvantages of consolidating Health Professions Student Loans carefully before making a decision. If possible, speak to a consolidation counselor as well.