FFEL Stafford
Loans (subsidized and unsubsidized)
If you have student loans other than Direct Student Loans, you may want to apply for a Direct Consolidation Loan.
Consolidation means making only one monthly payment to cover all your student loans. There may be several advantages for you if you consolidate your student loans. Because the interest rate will be the same as for Direct Loans, you may be able to pay less interest than you're paying on your current student loans. You may be able to reduce your monthly payments to as low as 4.25%. You can also choose the repayment plan that best suits your financial circumstances.
for information on how to consolidate one or more student loans and lower your interest rate to as low as 4.25%!
This rate can save you tens of thousands of dollars over the life of your loan. If you haven't consolidated yet, consider doing so soon, as it appears that interest rates are heading back up.
To consolidate under Direct Loans, you must have at least one Direct Student Loan or FFEL Program loan.
Listed below are the types of loans that may be consolidated:
Direct
Stafford/Ford Loans (subsidized and unsubsidized)
FFEL Stafford
Loans (subsidized and unsubsidized)
Direct and
Federal PLUS Loans
Guaranteed
Student Loans (GSL)
Federal
Insured Student Loans [FISL]
Federal
Supplemental Loans for Students (SLS)
Auxiliary
Loans to Assist Students (ALAS)
Federal
Perkins Loans
National
Direct/Defense Student Loans (NDSL)
Health
Professions Student Loans (HPSL)
Health
Education Assistance Loans (HEAL)
Loans for
Disadvantaged Students (LDS)
Nursing student
loans
Direct and
Federal Consolidation Loans
You can consolidate your loans at any time--while you're still in school, during your six-month grace period, or after you begin repayment. If you consolidate while you're in school, you'll receive a grace period on your consolidation loan. Note that you can consolidate only Direct Loans and FFELs while you're in school; the other types of loans listed in this section may be consolidated only after you leave school. Click here for information.
If you want to consolidate while you're in school and you're attending a Direct Loan school, you must have at least one fully disbursed Direct Loan or FFEL in an "in-school" period. If you're attending a non-Direct Loan school, you must have a Direct Loan, and you must have either a Direct Loan or FFEL in an "in-school" period. An "in-school" period is the period before a loan enters the grace period and while the borrower is enrolled at least half time at an eligible school.
Note: If you want to consolidate during your grace period, wait to apply until two months before the grace period ends. Repayment on consolidation loans begins within 60 days of the first loan disbursement, which means your grace period will be cut short if you apply too early.
If you have only FFEL Program loans, once you leave school you can consolidate them under Direct Loans only if you can't get an FFEL consolidation loan, or you can't get one with income-sensitive repayment terms acceptable to you.
Similar conditions apply to parents. They must have an outstanding balance on a Direct PLUS Loan or a Federal PLUS Loan (under the FFEL Program). Parents must not have an adverse credit history or, if so, must either document extenuating circumstances or obtain an endorser for the loan who has no adverse credit history. You may not be an endorser for your parent.
Even defaulted loans may be consolidated if you agree either to repay your Direct Consolidation Loan under the Income Contingent Repayment Plan or make satisfactory repayment arrangements (for consolidation purposes, defined as three consecutive, voluntary, on time, full monthly payments).
Note: A married couple may consolidate their loans jointly if at least one spouse meets the requirements for loan consolidation. Both will be responsible for repayment of the loan, even if one spouse dies or they separate or divorce.
for information on how to consolidate one or more student loans and lower your interest rate to as low as 4.25%!
This rate can save you tens of thousands of dollars over the life of your loan. If you haven't consolidated yet, consider doing so soon, as it appears that interest rates are heading back up.
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