Loan Details

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Education Loan Consolidation

Program Description

Consolidation Loans are available to most borrowers of Federal education loans and come from one of two sources:
  • Direct Consolidation Loans are made by the U.S. Department of Education. You repay a Federal Consolidation Loan to the U.S. Department of Education. Federal Consolidation Loans are made through the Federal Family Education Loan (FFEL) Program. No new loans are being made under the FFEL Program. All new loans, and therefore consolidation of those loans, are made under the Direct Loan Program.
  • Federal Consolidation Loans are made through the Federal Family Education Loan (FFEL) Program. No new loans are being made under the FFEL Program. All new loans, and therefore consolidation of those loans, are made under the Direct Loan Program.

General Program Requirements

Generally, you are eligible to consolidate after you graduate, leave school, or drop below half-time enrollment. Most Federal student loans are eligible for consolidation, including:
  • Direct Subsidized Loans
  • Direct Unsubsidized Loans
  • Subsidized Federal Stafford Loans
  • Unsubsidized Federal Stafford Loans
  • Direct PLUS Loans
  • PLUS loans from the Federal Family Education Loan (FFEL) Program
  • Supplemental Loans for Students (SLS)
  • Federal Perkins Loans
  • Federal Nursing Loans
  • Health Education Assistance Loans
  • Some existing consolidation loans
Private educational loans are not eligible.

A PLUS loan made to the parent of a dependent student cannot be transferred to the student through consolidation. Therefore, a student who is applying for loan consolidation cannot include the PLUS loan the parent took out for the dependent student?s education.

Borrowers who are in default must meet certain requirements before they may consolidate their loans.

Loan Terms

Maximum Loan Amount: None

Interest Rate: Weighted average interest rate on the loans being consolidated, rounded to the nearest one-eighth of 1 percent, not to exceed 8.25 percent. Currently, the interest rate is fixed for the life of the loan. To get an estimate of your interest rate, go to the Online Calculator.

Maximum Loan Length: 10-30 years

Frequency of Payments: Varies

Prepayment penalties: None

Fees: None

Your Next Steps
The following information will lead you to the next steps to apply for this benefit.

Application Process

You apply for a Direct Consolidation Loan through StudentLoans.gov.

Once you sign in to StudentLoans.gov using your personal identifiers and <i>Federal Student Aid PIN</i>, you will be able to electronically complete the Federal Direct Consolidation Loan Application and Promissory Note. The electronic application on StudentLoans.gov consists of the following five steps:

1. Choose Loans & Servicer
2. Repayment Plan Selection
3. Terms & Conditions
4. Borrower & Reference Information
5. Review & Sign

Program Contact Information

For more information, visit the Federal Student Aid Loan Consolidation page. Or Visit the StudentLoans.gov Contact Us page.

Managing Agency

U.S. Department of Education