Federal Student Loan Consolidation

A Federal Direct Consolidation Loan allows you to combine all the eligible federal student loans you received to finance your college education into a single loan. Consolidation can lower your monthly payment, offer the security of a fixed interest rate, and extend your repayment term to 30 years. A federal consolidation loan also provides the convenience of making one single payment each month. However, with the extended term, you will pay more interest over the life of the loan(s). Since there are no pre-payment penalties, many borrowers prefer lower payments when starting out in their careers and then make larger payments later as their incomes increase to minimize the overall interest costs.

Visit the Department of Education’s consolidation loan page to apply for student loan consolidation.

Most federal education loans are eligible for consolidation, including Subsidized and Unsubsidized Direct and FFEL Student Loans, SLS, Federal Perkins Loans, Federal Nursing Loans, and Health Education Assistance Loans. Grad PLUS and Parent PLUS borrowers may also consolidate. Private education loans are not eligible. However, you can consolidate private student loans through Private Student Loan Consolidation.