Loan Consolidation

What does it mean to "consolidate" my student loans?
Through loan consolidation, you can combine some or all of your outstanding student loans onto one consolidated loan. Loan consolidation may extend your repayment period, eliminate the hassle of dealing with multiple lenders, allow you to repay your loan as a share of your income, and - in many cases - give you a break on interest costs. Loan consolidations are available from the Department of Education's Direct Loan program, as well as private lenders participating in the Department's government-guaranteed (FFEL) program.

How will the interest rate be calculated?
The interest rate for a Direct Consolidation Loan is the weighted average of the interest rates on the loans being consolidated, rounded to the nearest higher one-eighth of one percent.

Where can I get a direct consolidation loan?
To apply for a loan consolidation through the Direct Loan program, please call the Direct Loan origination center at 1-800-557-7392 and ask for an application to be mailed to you or download an application from loanconsolidation.ed.gov. If you have a FFEL loan, your lender may provide the same low rate.

What else do I need to know?

• You must include at least one direct or FFEL loan in your consolidation loan.
• You do not have to include all of your student loans in your consolidation loan.
• You may consolidate a single loan and/or an existing direct consolidation loan.
• There is no consolidation fee and no minimum or maximum loan balance.
• You may choose from a variety of repayment plans, including one based on your income.
• You may prepay your direct consolidation loan at any time.
• A typical loan consolidation requires 60 to 90 days to process, largely because each of your lenders must respond to our request to verify your loan balance.