Federal Loan Consolidation

The Federal Direct Consolidation Loan Program is a practical repayment option that allows borrowers to bundle all federal student loans into a single loan. Monthly savings from federal loan consolidation can total half the previous student loan payments, providing payment relief after graduation.

Federal Consolidation Benefits

• Lower monthly payments
• Simplified finances
• Flexible repayment options
• Retention of repayment benefits
• Renewed deferment options

In addition to significantly reducing monthly payments, consolidation lowers the debt to income ratio and improves a borrower's credit score. Student loan consolidation stretches the repayment period from the standard 10 years to up to 30 years, depending on the total amount of the student loans.

Federal Consolidation Eligibility

Borrowers that took out federal student loans while attending college may be eligible for federal student loan consolidation. This includes federal Stafford Loans, Federal PLUS loans, and Perkins Loans. Borrowers must have at least one Direct or FFEL loan that is in grace, repayment, deferment, or default. For a complete list of eligible loans, visit loanconsolidation.ed.gov.

Find your Consolidation Options

For more information, check out these frequently asked questions that can solve many of the common issues associated with the process.

To find out how consolidation can benefit you, check out this Consolidation Payment Calculator at StudentLoanConsolidator.com.

Related Consolidation Options

• Private student loan consolidation program
• Student loan consolidation frequently asked questions
• Federal Direct Loan consolidation program
• PLUS loan consolidation program