The student or parent is borrowing from the federal government, not from a bank or lending agency.
Consolidation is possible for students who have borrowed previously from bank or lending agency.
The Federal Direct Loan is a student aid program designed to allow students to borrow money directly from the federal government, through the university, for their post secondary education expenses. The annual maximum limits apply for the Fall, Spring, and Summer terms. This amount will be greater for independent students with unsubsidized loans. Morehead State University can certify a Federal Direct Subsidized Loan for an amount no more than the demonstrated need as determined by an approved need analysis system. Students who graduate in December may not receive the annual maximum.