William D. Ford Federal Direct Loan Program
If you borrowed money to help pay for you or your
child’s education after high school and you still owe
money on these loans,
the U.S. Department of
Education’s Federal Direct Consolidation Loan
Program may help you manage your loan repayment.
What are the advantages of a
Direct Consolidation Loan?
¾ Affordability – By consolidating your education
loans, you may be able to extend your loan
repayment period. Extending your
payments. But, remember, if you take longer to
repay your loan, you’ll pay more interest and,
therefore, a higher total amount over the life of
When you consolidate your federal education
loans into a Direct Consolidation Loan, you’ll
be able to take advantage of the interest rates
available in the Direct Loan Program. This may
reduce the total amount of money you repay over
the length of your loan.
¾ Flexibility – If you consolidate your loans,
you’ll gain financial flexibility. You’ll be able
to choose from several different repayment plans
and change your repayment plan as your
financial circumstances change. You pick the
plan that best fits your needs.
¾ Efficiency – A Direct Consolidation Loan allows
you to consolidate loans from different Lenders.
If you have different types of loans (subsidized
and unsubsidized student loans and/or parent
PLUS loans), you may consolidate all of them
into a single consolidation loan. You’ll receive
only one monthly bill.
There are no loan fees charged, and there are
no minimum or maximum loan amounts in the
Direct Consolidation Loan Program.
¾ Convenience – By consolidating your education
loans, you simplify your loan Commutations
requirements. You’ll have only one place to
send your monthly payment and only one phone
call to report a change of address or phone
number, request a deferment, or ask a question
about your loan(s).