Consolidating Federal Student Loans

A Direct Consolidation Loan allows you to consolidate (combine) one or more federal education loans into a new Direct Consolidation Loan for the purpose of lowering your monthly payment amount or gaining access to federal forgiveness programs. There is no application fee to consolidate your federal education loans into a Direct Consolidation Loan. Once your loans are combined into a Direct Consolidation Loan, the consolidation can’t be reversed. The loans that were consolidated are considered paid off and no longer exist.

ANYONE WHO HAS ALREADY TAKEN OUT FEDERAL STUDENT LOANS AND IS CONSIDERING CONSOLIDATION THOSE LOANS SHOULD NOTE THE FOLLOWING:

  • If you already have federal student loans and want to continue repaying through the IBR plan, you cannot take out another federal loan after June 30, 2026. If you do, either by applying for any additional loan or by consolidating existing loans, you will be ineligible to continue repaying through the IBR plan. You could continue to make payments through the RAP plan, however.
  • If you need to consolidate any of your existing loans and would like to repay through the IBR plan, your loan consolidation must be complete by June 30. 2026. Because the consolidation process can take anywhere from 45-60+ days to complete, this would mean that you would need to consider applying for your consolidation by late March.

Eligibility

Most federal student loans—including Direct Loans and FFEL Program Loans—are eligible for consolidation.

  • Subsidized Federal Stafford Loans from the Federal Family Education Loan (FFEL) Program
  • Unsubsidized and Nonsubsidized Federal Stafford (FFEL) Loans
  • FFEL PLUS loans
  • Supplemental Loans for Students
  • Federal Perkins Loans
  • Nursing Student Loans
  • Nurse Faculty Loans
  • Health Education Assistance Loans
  • Health Professions Student Loans
  • Loans for Disadvantaged Students
  • Direct Subsidized Loans
  • Direct Unsubsidized Loans
  • Direct PLUS Loans
  • FFEL Consolidation Loans and Direct Consolidation Loans (only under certain conditions)
  • Federal Insured Student Loans
  • Guaranteed Student Loans
  • National Direct Student Loans
  • National Defense Student Loans
  • Parent Loans for Undergraduate Students
  • Auxiliary Loans to Assist Students

Ineligibility

  • If you consolidate your federal loans with a private lender, your loans are no longer eligible for any federal repayment plans or forgiveness options. They will be considered private loans from that point on.
  • Private education loans are not eligible for federal loan consolidation.
  • Direct PLUS Loans received by parents to help pay for a dependent student’s education cannot be consolidated together with federal student loans that the student received.

When can I consolidate my loans?

Generally, you're eligible to consolidate after you graduate, leave school, or drop below half-time enrollment. The loans you consolidate must be in repayment or in a grace period.

Can I consolidate an existing consolidation loan?

Generally, you can’t consolidate an existing consolidation loan unless you include an additional eligible loan in the consolidation.

What if I want to consolidate defaulted loans?

If you want to consolidate a defaulted loan, you must either

  • make satisfactory repayment arrangements (defined as three consecutive monthly payments) on the loan before you consolidate; or
  • agree to repay your new Direct Consolidation Loan under an income-driven repayment plan.

If you want to consolidate a defaulted loan that is being collected through garnishment of your wages or that is being collected in accordance with a court order after a judgment was obtained against you, you can’t consolidate the loan unless the wage garnishment order has been lifted or the judgment has been vacated.

If you have defaulted federal student loans and are currently confined in an adult correctional facility or a juvenile justice facility, you may apply for loan consolidation as long as you are not a student at the time of consolidation.

If your loans are in default, you may want to consider the federal student loan rehabilitation option, instead.

When do I start repaying my new consolidation loan?

Repayment of a Direct Consolidation Loan will begin within 60 days after the loan is disbursed (paid out). Your loan servicer will let you know when the first payment is due.

If any of the loans you want to consolidate are still in the grace period, you have the option of indicating on your Direct Consolidation Loan application that you want the servicer processing your application to delay consolidating your loans until closer to the grace period end date. If you select this option, you won’t have to begin making payments on your new Direct Consolidation Loan until closer to the end of the grace period on your current loans.

Are there different repayment plans?

Borrowers have different needs, so there are several repayment plans—including income-driven repayment plans, which base your monthly payment amount on your income and family size. If you’re consolidating a defaulted loan, you must select an income-driven repayment plan. You’ll select a repayment plan when you apply for a Direct Consolidation Loan.

How to Apply

Apply for a Direct Consolidation Loan online at www.studentaid.gov. You can complete and submit the application online or by U.S. mail. Most people complete the online application in less than 30 minutes. (There is a very helpful online demo if you’re anxious about the process.)

After you submit your application, a loan servicer will manage the consolidation process. At this point in the process, this servicer will be your point of contact for any questions you may have about your consolidation application.

This servicer may be different from the one you selected on your consolidation application. If so, don’t worry—you’ll ultimately be working with the servicer you selected once the consolidation is complete.

Unless the loans you want to consolidate are in a deferment, forbearance, or grace period, it’s important for you to continue making payments on those loans until your consolidation servicer tells you that they have been paid off by your new Direct Consolidation Loan.