Consolidating student loans through department education
There is no fee to consolidate federal student loans into a Direct Consolidation Loan.After consolidation, you’ll only have to make one loan payment per month instead of multiple payments on your various federal student loans.This typically makes it easier for most people to manage their debt.Another benefit to consolidation is that the monthly payment on a Direct Consolidation Loan may be less than the combined payments that were previously due each month on the individual loans that were consolidated. For example, consolidating certain federal student loans could cause the loss of certain benefits, such as reduced interest rates or repayment incentive programs that are available under the loans being consolidated.)There are several repayment options for a Direct Consolidation loan, including plans that base the required monthly payment amount on your income.There are some restrictions on loans that can be consolidated under the Direct Consolidation Loan program.For example, private student loans (those that are not federally guaranteed) are not eligible for consolidation.
Most federal student loans are eligible to be consolidated under the Direct Consolidation Loan program.You have to include at least one Direct Loan or Federal Family Education Loan (FFEL) program loan that is in a or a repayment period (including loans that are in a forbearance or deferment) in the consolidation to qualify for a Direct Consolidation Loan.(Other types of eligible federal student loans can be consolidated as well, so long as they’re combined with at least one Direct Loan or FFEL program loan.) Loans that are in an in-school status are not eligible to be included in a Direct Consolidation Loan Almost all federal student loans can be consolidated under the Direct Consolidation Loan program.Among others, Subsidized Federal Stafford Loans, Unsubsidized Federal Stafford Loans, Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, Federal Supplemental Loans for Students (SLS), Federal Perkins Loans, and certain kinds of existing consolidation loans can be consolidated.Information about your federal student loans, including loan amounts, outstanding balances, loan statuses, and disbursements can be accessed through the National Student Loan Data System (https:// the Department of Education’s central database for student aid.