Consolidating Your Loans
A Direct Consolidation Loan allows you to combine one or more federal education loans into a single loan. There could be benefits to consolidating; however, it's not right for everyone. We highly recommend knowing all of the facts before making a decision to consolidate your loans!
Potential Advantages to Consolidation
Potential Disadvantages to Consolidation
It typically takes 30 business days (4-6 weeks) to originate a Direct Consolidation Loan from the date your application is received.
If you selected us (FedLoan Servicing) to service your Direct Consolidation Loan, you can view the progress of your application anytime through . Additionally, the following timeline illustrates what you can expect during the process of originating a Direct Consolidation Loan:
- Application is received by servicer (1 Day)
- Confirmation from your current servicer/loan holder of the pay-off amounts and interest rates on your underlying loans (generally within 2 weeks of receiving your application)
- Loan Summary Statement is sent for your review
- You have 10 business days from the date on your Loan Summary Statement to request any changes or cancel your consolidation request
- Once the 10 business day period is over, no further adjustments can be made to the consolidation application/promissory note – the loan will be pending disbursement for 3 days
- The loan is disbursed!
- A welcome letter for your new Direct Consolidation Loan will be sent, and your first payment will be due within 60 days.
NOTE: If your application is incomplete, we will communicate with you regarding what is required to complete your Direct Consolidation Loan application. In some cases, you will be able to provide the necessary information within 180 days. In other cases, a new application may be required.