You can consolidate (combine) multiple federal student loans with various repayment schedules into one loan: either a FFEL Consolidation Loan or a Direct Consolidation Loan, making a single monthly payment.
• Your monthly payment might be lower.
• You can take a longer time to repay (up to 30 years).
• You will receive a fixed interest rate on your Director FFEL Consolidation Loan.
Loan consolidation occurs when you combine one or more eligible loans into one loan as either a FFEL Consolidation Loan or a Direct Consolidation Loan resulting in one monthly payment. Compare the cost of repaying your unconsolidated loans with the cost of repaying a consolidation loan.
• Whether you’ll lose any borrower benefits if you consolidate, such as interest rate discounts or principal rebates, as these benefits can significantly reduce the cost of repaying your loans.
• Whether you might lose some discharge (cancellation) benefits if you include a Perkins Loan in your consolidation loan.
Carefully review your consolidation options before you apply. Talk to the holder of your loan(s) for more information beforeyou consolidate.
Your parents can also get a Direct or FFEL PLUS Consolidation Loan if they have obtained a PLUS Loan for you. PLUS Loans can only be consolidated once the loans have been fully disbursed.
If you’re in default on a federal student loan, you still might be able to consolidate, provided the defaulted loan is not subject to a judgment or wage garnishment.