Consolidating federal student loans is FREE and can only be done through the Federal Direct Consolidation Program. A Direct Consolidation Loan will combine multiple federal student loans into one loan, resulting in a single monthly payment. Most Direct Consolidation Loans will be eligible for alternative payment plans, including income-driven repayment plans that can lower monthly payments according to income levels. Private education loans are not eligible for the Federal Direct Consolidation Program.
Applying for a Direct Consolidation Loan can be completed online:
Step 1: Find out more information on the eligibility requirements, benefits, and potential warnings against federal loan consolidation at the Department of Education’s Federal Student Aid website here:https://studentaid.ed.gov/sa/repay-loans/consolidation.
Step 2: Make a list of all of your federal student loans. You can get a complete list of all of your federal loans here: https://www.nslds.ed.gov/npas/index.htm.
Step 3: Apply for a Direct Consolidation Loan by completing and submitting the FREE Federal Direct Consolidation Loan Application and Promissory Note found here: https://studentloans.gov/myDirectLoan/consolidationPaper.action.
Step 4: Choose and apply for a Repayment Plan option. If you are having trouble making your student loan payments, you may want to consider an income-driven repayment plan such as the Income Based Repayment Plan, Pay As You Earn Plan, Income Contingent Repayment Plan, or the Income Sensitive Repayment Plan: https://studentaid.ed.gov/sa/repay-loans/understand/plans. The online Repayment Estimator may be helpful in determining the best repayment plan for your needs: https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action.
If You Are a Current Servicemember with Federal Student Loans:
As a current servicemember you may be eligible for special benefits and repayment options for your federal student loans. More information can be found here: https://studentaid.ed.gov/sa/sites/default/files/military-student-loan-benefits.pdf.
For More Information on Federal Loan Consolidation:
If you have questions about consolidating your federal student loans, you can contact the Department of Education’s Loan Consolidation Information Call Center at: (800) 557-7392 or visit www.studentloans.gov/.
To File a Complaint About a Possible Student Loan Debt Relief Scam, Contact:
The Attorney General’s Public Inquiry Unit: https://oag.ca.gov/contact/consumer-complaint-against-business-or-company
Consumer Financial Protection Bureau: http://www.consumerfinance.gov/complaint/