How to consolidate federal student loans

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Consolidation loans are available for most federal loans. When you consolidate your federal student loans, you are taking a new loan called a Direct Consolidation Loan. This new loan combines several federal student or parent loans into one larger loan, which replaces your original federal student loans. You usually won’t get a lower interest rate, but you will benefit from a single monthly payment.

Consolidating will give you access to several alternate repayment plans which include extended repayment, graduated repayment and IBR (Income-Based Repayment).

Complete the application on StudentAid.govYou’ll need to finish the application in one session. Set aside about 30 minutes. Before starting, gather the documents listed in the “What do I need?” section before you start.

  1. Choose which loans you want to consolidate.
  2. Select a repayment plan.
  3. Pick a loan servicer. 

Read everything before submitting the form online.

Learn more: Ultimate Guide to Student Loan Consolidation

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