Generally, you are eligible to consolidate after you graduate, leave school, or drop below half-time enrollment. Most Federal student loans are eligible for consolidation, including:
Private educational loans are not eligible.
A PLUS loan made to the parent of a dependent student cannot be transferred to the student through consolidation. Therefore, a student who is applying for loan consolidation cannot include the PLUS loan the parent took out for the dependent student’s education.
Maximum Loan Amount: None
Interest Rate: Weighted average interest rate on the loans being consolidated, rounded to the nearest one-eighth of 1 percent, not to exceed 8.25 percent. Currently, the interest rate is fixed for the life of the loan. For more information of the specific loan terms, please visit the Loan Consolidation home page.
Maximum Loan Length: 10-30 years
Frequency of Payments: Varies
Prepayment penalties: None
|Varies, does not exceed 8.25%|
You apply for a Direct Consolidation Loan through StudentAid.gov.
Once you sign in to Studentaid.gov using your personal identifiers and Federal Student Aid PIN, you will be able to electronically complete the Federal Direct Consolidation Loan Application and Promissory Note. The electronic application on StudentLoans.gov consists of the following five steps:
1. Choose Loans & Servicer
2. Repayment Plan Selection
3. Terms & Conditions
4. Borrower & Reference Information
5. Review & Sign