process by combining several types of federal
education loans into one loan, so you make just one
payment a month. Also, that monthly payment might
be lower than what you’re currently paying.
You can get a Direct Consolidation Loan, available
from ED, or a Federal (FFEL) Consolidation Loan,
available from participating FFEL lenders. Under either
program, the loan holder pays off the existing loans
and makes one Consolidation Loan to replace them. If
you have subsidized and unsubsidized loans, they’ll be
grouped accordingly when you consolidate so you
won’t lose your interest subsidy on the
subsidized loans.
There are three categories of Direct Consolidation
Loans: Direct Subsidized Consolidation Loans, Direct
Unsubsidized Consolidation Loans, and Direct PLUS
Consolidation Loans. If you have loans from more
than one category, you still have only one Direct
Consolidation Loan and make only one monthly
payment.
Under the FFEL Program, you can receive a Subsidized
and/or an Unsubsidized FFEL Consolidation Loan,
depending on the types of loans you're consolidating.
(FFEL PLUS Consolidation Loans are included under
the Unsubsidized FFEL Consolidation Loan category.)
You can also consolidate Federal Perkins Loans and
other federal education loans. To get a complete list of
the kinds of federal student loans that can be
consolidated.
contact the Direct Loan Origination Center’s
Consolidation Department if you’re applying for a
Direct Consolidation Loan. You can reach them by
calling
1-800-557-7392. TTY users can call 1-800-557-7395.
contact a participating FFEL lender if you’re applying
for a FFEL Consolidation Loan.
Under FFEL consolidation, if the same holder holds all
the loans you want to consolidate, you must obtain
your consolidation loan from that holder, unless you
haven’t been able to get a loan with income-sensitive
repayment terms.
To get a Direct Consolidation Loan, you must
consolidate at least one Direct Loan or
FFEL. If you don't have a Direct Loan, but you have a
FFEL, you must first contact a FFEL lender that makes
FFEL Consolidation Loans to ask about obtaining a
FFEL Consolidation Loan. If you can't get such a loan,
or you can't get one with income-sensitive repayment
terms acceptable to you, and you're eligible for the
Direct Loan Income Contingent Repayment Plan, you
can apply for a Direct Consolidation Loan.
Even if you're in default, you might be eligible for a
Consolidation Loan if certain conditions are met. Talk
to your loan holder(s).
