If you have several federal student loans, you may be able to combine — or consolidate — them into one loan. You may consider this option in order to:
- Lower your monthly payment amount by extending the repayment period,
- Lock in a fixed interest rate for the entire repayment period of the loan, and/or
- Combine multiple loan balances under a single loan holder — the U.S. Department of Education (ED) — so that you have to make only one monthly payment.
Remember, however, that you are not required to consolidate your federal student loans. Consolidation is a decision that you should not take lightly. Because consolidation is often a one-time decision, you'll want to learn as much as possible before deciding.
Access the Direct Consolidation Loans website for more information about obtaining a Direct Consolidation loan.
If you have already obtained a FFELP Consolidation loan, see Frequently Asked Questions for additional information.