FDLP Consolidation Loan Application and Promissory Note

There are many reasons why a borrower may apply for a Consolidation loan. A borrower may seek a Consolidation loan to merge several types of federal student loans with varying repayment terms into a single loan. Or a borrower may seek a Consolidation loan in an effort to lower monthly payments or extend the repayment period.

Consolidation Loan Forms

Until recently, a borrower could consolidate his or her loans under either the Federal Family Education Loan Program (FFELP) or the Federal Direct Loan Program (FDLP, or Direct). However, recent legislation has amended the law that governs federal student loans. Specifically, the Health Care and Education Reconciliation Act of 2010 requires that no new loans may be made under the FFELP; any Stafford, PLUS, or Consolidation loan first disbursed on or after July 1, 2010, must be made under the FDLP.

The Federal Direct Consolidation Loan form includes an application the borrower must complete to apply for the loan and a promissory note to secure the debt. The form also provides the borrower with instructions for completing the forms, important information regarding the borrower's rights and responsibilities, and an overview of the loan process.

Applying for a Federal Direct Consolidation Loan

There are several ways that a borrower can apply for a Federal Direct Consolidation Loan:

Online Web application
Express phone application, or
Paper application

A borrower can access any of these applications at http://loanconsolidation.ed.gov/borrower/bapply.html.