Consolidation Loan

You can consolidate (combine multiple federal student loans with various repayment schedules into the loan). You may get either a FFEL Consolidation or a Direct Consolidation Loan.

Benefits of a Consolidation Loan
  • Make one monthly payment
  • You can pay a lower interest rate than one or more of your existing loans
  • Your payment can be significantly lower
  • You can take longer time to repay (up to 30 years)
  • You can consolidate your loan during grace periods, once you entered repayment, or during period of deferment or forbearance
What is the Interest Rate for a Direct and FFEL Consolidation Loan?

The interest is a fixed rate for the life of the loan unlike Direct and FFEL Stafford loans, which have variable interest rates. The fixed rate is base on the weighted average of the interest rates on the loans you consolidate, rounded up to the nearest 1/8 of a percent. The interest rate cannot exceed 8.25%.

How can I get a Consolidation Loan?

You can contact the Department of Education Consolidation Department at 1-800-557-7392 or visit