Federal Loan Consolidation

Federal Loan Consolidation allows borrowers who have multiple federal student loans (Federal Direct Loans, Federal Stafford Loans, and/or Federal Perkins Loans) to consolidate these loans into one Federal Direct Consolidation Loan. Borrowers determine which federal loans to include in the consolidation loan. The interest rate for the federal consolidation loan is a fixed interest rate for the life of the loan. The fixed rate is determined by a weighted average of the interest rates for the loans being consolidated, rounded to the nearest one-eighth of one percent. Borrowers may extend the loan repayment period up to 30 years.

Normally, federal consolidation loans enter repayment within 60 days of consolidation. Students can maximize their use of their 6 month grace period for federal Direct Loans by entering their grace period end date on the consolidation application. This will delay the processing of their federal consolidation application. Students can determine their grace period end date by contacting their servicer.