Consolidating your federal education loans can simplify your payments, but it also can result in the loss of some benefits. 
Learn about consolidation so you can weigh the pros and cons and decide whether a Direct Consolidation Loan is right for you. A Direct Consolidation Loan allows you to consolidate combine multiple federal education loans into one loan. The result is a single monthly payment instead of multiple payments. Loan consolidation can also give you access to additional loan repayment plans and forgiveness programs. There is no application fee to consolidate your federal education loans into a Direct Consolidation Loan. You may be contacted by private companies that offer to help you apply for a Direct Consolidation Loan, for a fee. These companies have no affiliation with the U.S. Department of Education ED or ED s consolidation loan servicers. There s no need to pay anyone for assistance in getting a Direct Consolidation Loan. The application process is easy and free. 

Should I consolidate my loans? 
The answer depends on your individual circumstances. Pros If you currently have federal student loans that are with different loan servicers , consolidation can greatly simplify loan repayment by giving you a single loan with just one monthly bill. Consolidation can lower your monthly payment by giving you a longer period of time up to 30 years to repay your loans. If you consolidate loans other than Direct Loans , consolidation may give you access to additional income - driven repayment plan options and Public Service Loan Forgiveness PSLF. Direct Loans are from the William D. Ford Federal Direct Loan Program. You ll be able to switch any variable - rate loans you have to a fixed interest rate. Cons Because consolidation usually increases the period of time you have to repay your loans , you will likely make more payments and pay more in interest than would be the case if you didn t consolidate. When you consolidate your loans , any outstanding intere

user: Hi, I am having difficulty paying my student loans and was wondering if I could consolidate my loans to help with my financial position?

assistant: This can be done but you should weight the pros and cons of consolidation and decide whether a Direct Consolidation Loan is right for you.

user: If I choose to consolidate my loans when can this be done?

assistant: Generally you are eligible to consolidate your loans after you graduate, leave school, or drop below half-time enrollment.

user: If some of my loans are still in the grace period when do I begin repayment of my consolidated loan?

assistant: If some of your loans that you want to consolidate are still in the grace period you have the option of indicated on your Direct Consolidation Loan application that you want the servicer that is processing  your application to delay the consolidation of your loans until closer to the grace period end date.

user: If I decide that I would like to consolidate my loans how do I go about applying for a Direct Consolidation Loan?

assistant: There are two ways in which you can apply. You can complete and submit the application online or you can download and print a paper application for submission by U.S. mail.

assistant: If you apply how do you think  you will submit your application, online or by mail?