Federal Loan Consolidation
Make sure consolidating your student loans is right for you.
If you're having trouble making your monthly student loan payments, then consolidation may be the right option for you. Federal student loan consolidation allows you to combine one or more existing student loans into a single new loan with a new repayment schedule.
You'll have lower monthly payments, but you will pay much higher interest over the life of the loan because you'll be making smaller payments over a longer time.
All federal student loan consolidations are now processed by the U.S. government through the Federal Direct Loan Program (FDLP).
On April 19, 2022, the U.S. Department of Education (ED) announced several changes and updates related to Income-Driven Repayment (IDR) plans to include adjustments to borrower accounts, several one-time loan forgiveness actions, and new policies. Visit our Income-Driven Repayment (IDR) Waiver page for more information.
Joint (Spousal) Consolidation Loan Customers:
On October 11, 2022, the Joint Consolidation Loan Separation Act (JCLSA) was signed into law to allow joint consolidation loan borrowers to separate their joint loan obligations and reconsolidate into new individual Direct Consolidation Loans.
This ED separation and new consolidation process is being developed but will not be fully implemented until late 2024 at the earliest. Visit StudentAid.gov to learn more about this separation process.