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Loan Consolidation

A Direct Consolidation Loan allows a borrower to consolidate (combine) multiple federal student loans into one loan. The result is a single monthly payment instead of multiple payments.

From January through June 2012, the U.S. Department of Education will offer certain borrowers two options for consolidation:

  • Traditional Direct Consolidation Loans

  • Special Direct Consolidation Loans

During this time period, borrowers making separate payments on their federal loans to one or more servicers (you repay your loan to a loan servicer) may be eligible for a Special Direct Consolidation Loan. A Special Direct Consolidation Loan offers borrowers different repayment terms and benefits than a traditional Direct Consolidation Loan. There is also a different application process for Special Direct Consolidation Loans. For more information about Special Direct Consolidation Loans, please go to the Special Direct Consolidation Loans page.

If you would like more information about traditional Direct Consolidation Loans, please go to the traditional Direct Consolidation Loans page.


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