Consolidating your federal education loans can simplify your payments.

A Direct Consolidation Loan allows you to consolidate (combine) multiple federal education loans into one loan. Through your completion of the Federal Direct Consolidation Loan Application and Promissory Note, you will confirm the loans that you want to consolidate and agree to repay the new Direct Consolidation Loan.

Once the consolidation is complete, you will have a single monthly payment on the new Direct Consolidation Loan instead of multiple monthly payments on the loans you consolidated.


The interest rate for Direct Consolidation Loans remains the weighted average of the interest rate of the loans included in the consolidation, rounded up to the next higher 1/8 of 1 %.  The is no maximum interest rate for Direct Consolidation Loans.


More information on the  Direct Consolidation Loan is available at StudentAid.gov.