How Do I Consolidate My Federal Loans?
A Federal Consolidation Loan (FCL) is a way to pay off your current federal student loans by taking out a new single loan. Any federal student loan qualifying for consolidation and FCL repayment terms are flexible, giving you anywhere from 10 to 30 years to repay your new loan. The advantages are one monthly payment, instead of several, and, depending upon the number of years chosen for repayment, could significantly reduce the amount of money you pay each month.
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Instructions
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Begin your research for consolidating your loans approximately 90 days before graduation.
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Confirm that you have at least one federal student loan such as a Direct Loan, Federal Family Education Loan (FFEL), Stafford Direct loan, Grad PLUS loan or a Perkins loan.
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Put together all of the information on the loans you currently have such as the last statements you received which should show current balance, monthly payments and account numbers.
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Contact the financial aid office at your school for an appointment to meet with a counselor to determine if consolidation is right for you.
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Go online at the Direct Consolidation website. You will be required to answer questions about loans you currently have and, if you are still in school, your school’s financial aid office. Apply for a PIN if you do not have one from the U.S. Department of Education Federal Student Aid website so that you can e-sign your application online. If you want, you can also print your application or telephone Direct Consolidation by calling 800-557-7392.
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Meet with your lender to find out if they are part of the FCL program. Bring all of your loan documentation.
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Study all of the consolidation material you receive, including costs and terms, to help you determine which method of consolidation will work best for you. Consider things like interest rate, monthly payments, number of years of the loan and total cost of the loan.
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Follow up with your financial aid counselor, Direct Consolidation, or your lender to finalize the consolidation arrangements.
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References
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