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 have a number of student loans and am wondering if I consolidated them into one loan if that would benefit me.

assistant: Consolidated your federal education loans may simplify your payments but it can also result in the loss of some benefits. Before consolidating your loans you should weight the pros and cons of doing so and decide whether a Direct Consolidation Loan is right for you.

user: If I wish to consolidate my loans who so I contact if I have questions about the consolidation?

assistant: This depends very much on where you are in the consolidation process.


assistant: Have you applied for a Direct Consolidation Loan?

user: Yes I have already applied for a consolidation loan.

assistant: In that case it would be best if you contacted the Student Loan Support Center at 1-800-557-7394.

user: I have some loans in the grace period at the moment so when do I have to begin repayment of my consolidation loan?

assistant: You will not have to begin making payments on your new Direct Consolidation Loan until closer to the end of the grace period on your current loans.

user: I have a Federal Perkins Loan, can this loan be included in a consolidation loan?

assistant: Yes that is one of the loans that can be included in your consolidation loan.

user: What happens to my private education loans if I consolidate my loan debt?

assistant: Unfortunately private education loans are not eligible for consolidation. That being said, however, for some Direct Consolidation Loan repayment plans , the total amount of your education loan debt including any private education loans determines how long you have to repay your Direct Consolidation Loan.