consolidation loan

American  

noun

1. a loan made in order to consolidate several debts into one loan, usually for the purpose of reducing the monthly payments by extending them over a longer time period.

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consolidation loan British  

noun

1. a single loan which is taken out to pay off several separate existing loans

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Example Sentences

Consolidating a defaulted loan allows a borrower to pay off one or more federal student loans with a new direct consolidation loan.

From Los Angeles Times

Before paying off the debt through a consolidation loan, a borrower must either agree to repay the new direct consolidation loan under an income-driven repayment plan or make three consecutive on-time, voluntary full monthly payments on the defaulted loan.

From Los Angeles Times

There are other solutions for debt, including a debt management plan through a credit counselor, debt settlement or a consolidation loan.

From Los Angeles Times

A consolidation loan replaces multiple debts with a single loan, often at a fixed interest rate.

From Los Angeles Times

If they combine their federally backed loans into a federal direct consolidation loan before Wednesday, their previous payments on those loans will automatically be eligible for review.

From Los Angeles Times