You are using an outdated and unsupported browser. Please upgrade your browser to improve your experience.
Skip to Header Navigation Skip to Main Navigation Skip to Main Content Skip to Footer

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.

Pros Cons
  • Lower monthly payments
  • One bill, one lender
  • No prepayment penalties
  • A fixed interest rate
  • No limit to the number of loans that may be consolidated
  • No required minimum balance per federal rules
  • Possible eligibility for the Public Service Loan Forgiveness (PSLF) program if you work in public service
  • Possible eligibility for additional repayment plans based on your income
  • A longer repayment period
  • More interest to repay (calculated as the weighted average of all loans and rounded up to the nearest 1/8 of 1%)
  • Possible loss of current loan incentives
  • Loss of deferment subsidy on Perkins loans

Next Steps

All federal student loan consolidations are now processed by the U.S. government through the Federal Direct Loan Program (FDLP).

Visit to get more details and to apply for a consolidation loan or visit for more information about the PSLF program.

If you consolidate your loans by June 30, 2024, you can take advantage of the limited-time opportunity of one-time adjustments to payment counts under the Income-Driven Repayment and PSLF programs. For more information, please visit

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 to learn more about this separation process.