Federal loan consolidation
Find out how to simplify your loan payments and potentially save money through federal loan consolidation.
What is Federal Loan Consolidation?
A Direct Consolidation Loan allows you to consolidate multiple federal student loans into one loan at no cost to you.
Why would I want to consolidate my loans?
Depending on your goals for repayment, there are four main benefits to consider when it comes to consolidation:
- If you have federal student loans with different loan servicers, consolidation can greatly simplify loan repayment by giving you a single loan with just one monthly bill.
- Consolidation can lower your monthly payment by providing access to additional income-driven repayment plans or by giving you more time to repay your loan (up to 30 years) if you choose the Standard or Graduated repayment plan.
- A Direct Consolidation Loan has a fixed interest rate for the life of the loan.
- The fixed rate is the weighted average of the interest rates on the loans being consolidated.
- You retain benefits that are exclusive to federal student loans such as multiple repayment plans, loan deferment or forbearance options, and even loan forgiveness programs.
When can I consolidate my loans?
Generally, you're eligible to consolidate after you graduate, leave school, or drop below half-time enrollment. The loans you consolidate must be in repayment or in a grace period.
How do I consolidate my loans?
Head to the Direct Loan Consolidation website to get started.
What are my repayment options?
Visit the Federal Student Aid website's guide for understanding student loan repayment for a full breakdown of your options.