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.