How to Consolidate Federal Student Loans
At some point, it may be necessary to apply for a student loan debt consolidation to ease the financial burdens that often go along with attending college. This process allows the borrower to combine all his federal student loans into one, possibly resulting in a lower monthly payment, extension of the repayment period, and/or a lower interest rate.
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Instructions
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Gather all educational loan documents. You will need to list all of your educational loans on the application and indicate which ones you would like to consolidate. Loans not included in the consolidation may still be considered in determining your repayment period.
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Apply for a PIN number through the Department of Education Financial Aid website if you do not already have one. You will need this to complete and electronically sign your application and promissory note.
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Use the Federal Direct Consolidation Loans Online Calculator to determine what your monthly payments will be. There are four plans to choose from, so check each one and select the one that best suits your needs.
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Fill out your application online by going to the Federal Direct Consolidation Loans Borrower Services website and clicking on the "Apply Online and E-sign Your Promissory Note" link. Alternately, you can start the application process via phone by calling 800-557-7392. You can also download a paper copy of the application to be completed by mail.
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Tips & Warnings
If you're not sure your loans qualify for consolidation into a Direct Consolidation Loan, visit the Federal Direct Consolidation Loans Information Center for a list of eligible loans.
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