Consolidating loans through direct loans
Consolidating loans with a private lender (refinancing) disqualify those loans from all federal IDR plans. Any eligible federal loans can be combined in a direct federal consolidation loan, regardless of who the loan servicer is.Most federal student loans are eligible to be combined into a federal Direct Consolidation Loan, including: Keep in mind that when refinancing with a private lender, you lose federal borrower benefits such as access to income-driven repayment programs, forbearance, or deferment, and the potential to qualify for loan forgiveness after 10, 20 or 25 years of payments. If you have private loans they are not eligible for federal loan consolidation.
The applicant will have the opportunity to add loans to and/or remove loans from the information obtained from the NSLDS.
If you just want to reduce your monthly payment, discuss the federal loan repayment options available with your lender. Single Payment If you have loans with multiple lenders/holders, you send a monthly payment to each.
However, if you consolidate all those loans, you make a single payment.
No Extra Costs There are no application or processing fees and there are no prepayment penalties.
Visit the Federal Student Loan Consolidation Webpage for more information. You should know the interest rate, fees and terms before you sign any agreement.