Consolidation

If you decided that consolidation is the right option for you, apply online now at StudentLoans.gov! Remember, if you are interested in Public Service Loan Forgiveness, make sure to mark that on your application.

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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!

Additional Considerations

Private Education Loans

You are not able to include private education loans in a Direct Consolidation Loan. However, those balances may be included in the debt not to be consolidated. Adding those balances may extend the repayment term on your Direct Consolidation Loan, as long as the total amount of the loans not being consolidated doesn't exceed the total amount that is being consolidated.

PLUS Loans

As a student, you are not able to consolidate parent PLUS loans that are in your parent's name with your own federal student loans.

As a parent, you are able to consolidate parent PLUS loans that you obtained on behalf of a dependent student with federal student loans that you took out for your own schooling. However, you are not able to consolidate parent PLUS loans that you obtained on behalf of a dependent student with federal student loans that the student obtained in his or her own name.

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Consolidation Timeline

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:

  1. Application is received by servicer (1 Day)
  2. 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)
  3. Loan Summary Statement is sent for your review
  4. You have 10 business days from the date on your Loan Summary Statement to request any changes or cancel your consolidation request
  5. 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
  6. The loan is disbursed!
  7. 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.

Once the Consolidation Loan has been disbursed:

  • If any financial adjustments are required based on a balance update from your previous servicer or loan holder (such as an underpayment or an overpayment) those updates are generally completed within 30-45 days from the date your Direct Consolidation Loan is disbursed.
  • If you believe there is still an outstanding balance on a loan that was included in your consolidation more than 45 days from the date your Direct Consolidation Loan was disbursed, please contact us.
  • If you forgot to include any loans in your Direct Consolidation Loan, you only have 180 days from the original disbursement date to request to add additional loans (PDF).
  • If it has been more than 180 days from the date your Direct Consolidation Loan was disbursed, you will need to complete a new Direct Consolidation Loan Application and Promissory Note to request a new loan.