Loan consolidation can simplify the student loan repayment process by allowing you to combine several types of federal student loans and repayment schedules into one. The repayment process is simplified because there is only one monthly payment. Student loan consolidation may be a great solution for you if you are looking to conveniently and easily manage multiple loans. Borrowers in default on a federal student loan are eligible for a consolidation loan if certain conditions are met. If you choose to consolidate your student loans, you can apply for a Direct Consolidation Loan through StudentLoans.gov.
To be eligible for a Direct Consolidation Loan, you:
Some private companies may offer to help you apply for a Direct Consolidation Loan for a fee. Be aware that these companies have no affiliation with the U.S. Department of Education or ED's consolidation loan servicers. Just like applying for scholarships, you never have to pay for help in getting a Direct Consolidation Loan.
Federal loans can be consolidated during periods of repayment, grace, deferment, and forbearance. Loans cannot be consolidated while the borrower is still in school. If you want to consolidate a defaulted loan, you have to either make satisfactory repayment arrangements on the loan with your current loan servicer before you consolidate or repay your new Direct Consolidation Loan under the:
The interest rate for a Direct Consolidation Loan has a fixed rate for the life of the loan. The fixed rate is based on the weighted average of the interest rates on the loans at the time the borrower consolidates, rounded up to the nearest 1/8%. There is no cap on the interest rate of a Direct Consolidation Loan.
Latest College & Financial Aid News
June 11, 2019
A Wiccan Professor at St. Bonaventure sued the university and her alma mater for discrimination, alleging that she was not allowed to advance in her career because she is a woman and a witch. The reported discrimination began around Halloween in 2011, after she was asked to conduct an interview about her Wiccan beliefs with the university's student TV station, SBU-TV. [...]
June 6, 2019
In honor of LGBTQ Pride Month this June, Scholarships.com is recognizing the success of, and providing financial aid resources to the lesbian, gay, bi-sexual, transgender, and queer community and its allies through featured LGBTQ scholarships. These colorful LGBTQ scholarships are not only intended for those who identify as LBTQ or are questioning, but are available to LGBTQ parents and allies, as well. Below is a preview of LGBTQ scholarships that were created to provide economic mobility and equality for LGBTQ students and allies who may face unique challenges on their educational journeys. For even more LGBTQ scholarships, Parent LGBTQ scholarships or LGBTQ Ally scholarships, visit here. [...]
June 5, 2019
We're bringing the heat with these fiery summer scholarships for which you can apply this summer break. While scholarships are offered year-round, many students have more free time during the summer to devote to scholarship essays and applications, so we encourage you to prioritize financial aid in-between basking in the sun. [...]