Frequently Asked Questions:
1. What is a Federal Direct Consolidation loan?
A Federal Direct Consolidation Loan is a loan that allows a borrower to combine all eligible federal
education loans into a new loan with a single a payment.
2. Which loans can I consolidate?
Federal Direct Stafford Loans (Direct Loans - Subsidized and Unsubsidized)
Federal Stafford Loans (FFEL - Subsidized and Unsubsidized)
Federal Supplemental Loans for Students (SLS Loans; formerly Auxiliary Loans to Assist Students
Federal Perkins Loans, formerly National Defense/National Direct Student Loans (NDSL)
Health Professions Student Loans, including Loans for Disadvantaged Students
Health Education Assistance Loans (HEAL)
Federal Insured Student Loans (FISL)
Federal PLUS (Parent) Loans (Parent and Student Loans cannot be consolidated together)
Federal Direct PLUS Loans
Federal Nursing Loans
3. Am I eligible for loan consolidation?
You may apply for a Direct Consolidation Loan while in school*, during your grace period, or once
you’ve entered repayment. Stafford and PLUS borrowers may also consolidate their loans at any time
during repayment including periods of deferment or forbearance.
*Borrowers who are in school are eligible for in-school consolidation if they are:
--attending a Direct Loan school and include at least one Direct Loan or FFEL in an in-school period
--attending a non-Direct Loan school and have at least one Direct Loan and include at least one
Direct Loan or FFEL in an in-school period.
4. What will be my interest rate?
The Federal Direct Consolidation loan interest rate is a fixed rate equal to the weighted-average of the
interest rates of the loans being consolidated rounded up to the nearest 1/8 of 1% but not exceeding
5. Are there fees that I must pay to receive a Federal Direct Consolidation loan?
There are no processing or application fees associated with consolidating a loan.
6. Who should I call for a Federal Direct Consolidati