Loan Consolidation

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

Learn about Consolidation

Visit the Consolidation page to learn about consolidation.

  • Eligible loans include Direct Subsidized and Unsubsidized Loans, Direct PLUS Loans,  FFEL Stafford Loans, FFEL PLUS Loans,  Federal Perkins Loans, and Loans for Disadvantaged Students. 
  • Private  loans are not eligible for  Federal Direct Consolidation.
  • The interest rate is a fixed rate is based on the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest one-eighth of 1%. However, the rate will not exceed 8.25%.
  • Repayment begins within 60 days upon disbursement of the loan. 
  • The repayment term ranges from 10 to 30 years.
  • Once your loans are combined into a Direct Consolidation Loan, they cannot be removed. The loans that were consolidated have been paid off and no longer exist. 

 Apply for Consolidation

To apply, complete the Consolidation Loan Application online at

  • 1 – Choose the loans to include in the new consoldation loan and choose a loan servicer. 

  • 2 – Choose a Repayment Plan -  An applicant who is interested in one of the “income-driven” repayment plans will be able to complete the electronic repayment plan request form as part of the Direct Consolidation Loan process.

  • 3 – Complete the Terms & Conditions

  • 4 – Complete the Borrower & Reference Information

  • 5 – Review & Sign

  • Once the application is submitted, the selected servicer will complete the processing and follow-up with the applicant. Once the application process is fully completed, the selected servicer will confirm the details of your existing loans (outstanding balance, existing servicer), complete the consolidation, and send loan payoffs to your existing loan servicers.