Direct consolidation loans are now the only type of federal student consolidation loan.
Under the Direct Loan Consolidation Program, you can consolidate Subsidized and Unsubsidized Stafford Loans, Supplemental Loans for Students (SLSs), Federally Insured Student Loans (FISLs), PLUS Loans, Direct Loans, Perkins Loans, Health Education Assistance Loans (HEALs), and just about any other type of federal student loan.
WARNING: It is very dangerous to consolidate federal loans into a private consolidation loan.
Students with demonstrated financial need are often awarded Direct Subsidized Loans which do not change interest as long as you are in school or in a deferment period.
If you’re having a tough time juggling multiple student loan payments, consolidating them may be the way to go. If you have questions about consolidation before you apply, you can contact the Education Department’s Loan Consolidation Information Call Center at 1-800-557-7392.
Consolidating your student loans means combining several loans into a single loan, meaning all those monthly payments get rolled into one. A Direct consolidation loan allows you to consolidate multiple federal education loans into a single loan so you’ll have a single loan payment to make each month, instead of three or four or more.
Refinancing and consolidating student loan debt can be a great way to save money and take advantage of today’s low interest rates.
Refinancing can save you money each month through lower payments, and save you money over the life of the loan through lower interest rates.