Federal Loan Consolidation
Graduate School Graduate Tuition & Financial Aid Managing Repayment
x Close
Tuition & Financial Aid
- Home
- Financial Aid Overview
- Types of Aid
- Financial Aid Timeline
- 2024-2025 FAFSA Changes
- Before You Apply
- Apply for Aid
- After You're Offered Financial Aid
- Student Emergency Funds
- Important Dates and Deadlines
- Financial Aid Eligibility
- Satisfactory Academic Progress
- Program Eligibility
- Financial Aid Terms and Conditions
- Course Program of Study
- Managing Repayment
- Tuition and Cost of Attendance
- Frequently Asked Questions
- Forms
- Contact Us
- 2024-2025 Financial Aid Overview
Consolidating federal student loans-Unsubsidized, Subsidized, PLUS-may help you manage your debt with a fixed interest rate and a single monthly payment.
How It Works
With loan consolidation, you combine the federal loans belonging to you into a single loan at a fixed interest rate. That means you can't consolidate loans with your spouse. Also, you cannot consolidate private loans with your federal loans.
Your fixed interest rate is determined by taking a weighted average of your loan rates rounded up to the nearest 1/8 of 1%. There is no cap on the interest rate of a Direct Consolidation Loan.
Advantages
- 1 monthly payment
- Longer repayment period
- Possible lower monthly payments
- Payment flexibility with deferment and forbearance options available
- No credit checks (except PLUS loan consolidation may require credit check)
- No fees or prepayment penalties
- Fixed interest rate
Disadvantages
- Total cost is higher due to longer repayment period
- Repayment begins immediately after consolidation
- Possibility of higher interest rates
- Could lose benefits such as subsidized interest, deferment, or loan forgiveness
More Information
- Federal Student Aid
- FinAid
- To apply for a Direct Consolidation Loan visit studentaid.gov. Log in and select Complete Direct Consolidation Loan Application and Promissory Note.