Consolidation loans simplify loan repayment by combining several types of federal loans with various repayment schedules into one loan. Loans that can be consolidated include:
- Unsubsidized Stafford
- Subsidized Stafford
NOTE: Private education loans cannot be included.
The interest rate is calculated by taking the weighted average of the loans being consolidated and rounding up to the nearest ⅛ percent (capped at 8.25 percent). The calculated rate is fixed for the remainder of the repayment period. For more information, visit Loan Consolidation Information.
Once you graduate or are no longer attending school on a half-time basis, you can contact the Direct Loan (DL) Program for an application for a Direct Consolidation Loan which will combine Federal Family Education Loan (FFEL) and DL loans into one loan. When it is time to begin repayment, you will be provided with several repayment and consolidation options. For more information, call the U.S. Department of Education Consolidation Department at (800) 557-7392 or visit www.loanconsolidation.ed.gov.
What if I don't consolidate?
If you have loans through the FFEL and DL programs and do not consolidate them, your lenders will send information about repayment and you will make separate monthly payments to each lender. For the FFEL program, payments are made to the private lender that made the loan or a designated loan servicer. For the DL program, payments are made to the Direct Loan Servicing Center. It is recommended that you visit the National Student Loan Data System (NSLDS) Student Access website at www.nslds.ed.gov. NSLDS is a central database for student aid and will provide additional information on your loans. You will need your FSA ID to access the website.