school loan consolidation

A Direct Consolidation Loan allows you to consolidate (combine) multiple federal student loans into one loan. The result is a single monthly payment instead of multiple payments.

Should I consolidate my loans?
What types of loans can be consolidated?
When can I consolidate my loans?
What are the requirements to consolidate a loan?
What is the interest rate on a consolidation loan?
How do I apply for a Direct Consolidation Loan?
When do I begin repayment?
Are there different repayment plans?
Consolidation Checklist 

There is no application fee to consolidate your federal student loans into a Direct Consolidation Loan. If you are contacted by someone offering to consolidate your loans for a fee, you are not dealing with the U.S. Department of Education’s loan consolidation servicer. To apply for a Direct Consolidation Loan, visit the Direct Consolidation Loans website at www.loanconsolidation.ed.gov.

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Should I consolidate my loans?

Carefully consider whether loan consolidation is the best option for you. Loan consolidation can greatly simplify loan repayment by centralizing your loans to one bill and can lower monthly payments by giving you up to 30 years to repay your loans. You might also have access to alternative repayment plans you would not have had before, and you’ll be able to switch your variable interest rate loans to a fixed interest rate.

However, if you increase the length of your repayment period, you'll also make more payments and pay more in interest. Compare your current monthly payments to what monthly payments would be if you consolidated your loans.

You also should consider the impact of losing any borrower benefits offered with the original loans. Borrower benefits from your original loan, which may include interest rate discounts, principal rebates, or some loan cancellation benefits, can significantly reduce the cost of repaying your loans. You might lose those benefits if you consolidate.

Once your loans are combined into a Direct Consolidation Loan, they cannot be removed. The loans that were consolidated are paid off and no longer exist. Take the time to study the pros and cons of consolidation before you submit your application. Review theConsolidation Checklist to see if consolidation is the best option for you.