Federal Student Loan Consolidation
William D. Ford Direct Consolidation Loans
Federal Student Loan Consolidation is an option for borrowers after they leave school. Consolidation isn’t mandatory – it best suits borrowers with multiple servicers, those who have a combination of both FFEL and Direct Loans, and for those who want to extend repayment up to 30 years.
Consolidation combines original federal student loan debt into one new loan with a fixed interest rate (based on the weighted average interest rate of the loans that are being consolidated).
Consolidation is a process that can’t be reversed, so before electing this option, ask yourself the following questions:
If you elect to consolidate, apply online at https://studentloans.gov