Apply for Consolidation

How do I apply for consolidation?

The easiest way to apply to consolidate your loans into a new Direct Consolidation Loan is by logging into your account on studentaid.gov and applying online, but you can also apply by mail. More tips and tricks about each method of applying are below.

When you apply, make sure that you only include the loans you want to consolidate together in your application. When you apply online, you can check off the loans you want to include in the consolidation loan, and you can manually enter if there are loans that are missing. When you apply on paper, the application will ask you to write down which loans you want to be consolidated and which loans you do not want to be consolidated.

Remember, you can consolidate a single loan. If you only have one FFEL, Perkins, or Parent PLUS loan, you can still consolidate it to make it eligible for RAP, PSLF, or a Direct Loan relief program.   You do not generally have to consolidate it with any of your other loans, and you may want to exclude your Direct Loans from the consolidation to avoid losing certain benefits on those loans, such as the ability to consolidate them out of default in the future. Although a single FFEL Consolidation Loan is generally not eligible to consolidate by itself, you can consolidate it by itself if you want to participate in the PSLF program or if you are consolidating to remove the loan from default. You are allowed to consolidate for this reason even if you are not currently working in public service, but think you might in the future.

If you are consolidating your loans out of default on or after July 1, 2026, you must agree to either repay the new Direct Consolidation Loan under the RAP plan  (by applying for RAP when you submit your consolidation application), or make three consecutive, voluntary, on-time, full monthly payments on the defaulted loan before you consolidate it. For most borrowers consolidating out of default, agreeing to repay in RAP makes sense as RAP typically offers lower payments than the other repayment option, the Tiered Standard Plan. 

When you apply online, you will have to choose a repayment plan. Borrowers consolidating after July 1, 2026 will have two options: the Tiered Standard Plan or Repayment Assistance Plan (RAP). If you choose Tiered Standard, your new servicer will calculate your payments based on your loan balance. If you choose the RAP plan, you’ll be asked to submit an IDR application requesting enrollment in RAP, which means you may have to provide proof of your income. If you are applying online, the consolidation application should also allow you to apply for RAP if you choose to, and you may be able to import your income from your tax return to simplify the application process. If you are applying using a paper application, you can submit a paper application to enroll in RAP with your consolidation application, and you may need to attach proof of your income. For more information, see our page on choosing a repayment plan.

You will be asked to select a loan servicer. If you apply online, you’ll select your servicer from a list of choices. There is no obvious choice, and there isn’t a lot of useful information to help choose between servicers. If you’re happy with your current servicer, you may want to stick with them. 

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Pro Tip: Sometimes it may be helpful to consolidate some loans separately from others. Although this may not seem to make sense, in many cases, you can consolidate just one loan into a new Direct Consolidation Loan. If you have multiple loans, it may be useful to apply for two different Direct Consolidation loans. Why? 

• If you end up defaulting on your loans in the future, having more than one loan means that you will be able to consolidate out of default, which you wouldn’t be able to do if you only had a single Direct Consolidation Loan. (You can consolidate two Direct Consolidation loans together into a new Direct Consolidation loan to get out of default.) 
• If you have Parent PLUS loans, it might make sense to consolidate them separately from any loans that you borrowed for your own education. This is because consolidation loans containing Parent PLUS loans have different repayment options than consolidation loans that do not, and even one Parent PLUS loan in a consolidation will affect the entire loan. Consolidation loans containing Parent PLUS loans that are disbursed after July 1, 2026, will not be eligible for any IDR plans, meaning borrowers with Parent PLUS loans should be particularly careful about consolidating Parent PLUS with non-Parent PLUS loans going forward. 

If you want to create two separate consolidation loans, you will need to submit a separate application to create each new consolidation loan. To do so, you can submit one online application by logging into studentaid.gov and then submit one paper application, or you can submit two paper applications. You cannot submit two online consolidation applications back-to-back.

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Apply online

The easiest way to apply to consolidate your loans into a new Direct Consolidation Loan is online. You will have to log in to your StudentAid.gov account to apply. When you apply online after logging into your account, the application will automatically allow you to select which loans to consolidate together. The online application will also allow you to apply for an income-driven repayment plan at the same time. 

Apply by mail

You can find the .pdf versions of the applications to complete and send in by mail on the StudentAid.gov Forms Library under the Loan Repayment tab. After you complete the application, send the forms to one of the four loan servicers below. You can choose which loan servicer you send these forms to.

What happens after I apply for consolidation?

After you apply for consolidation, your application will be processed, and assuming it is approved, you will be assigned a new loan servicer for the Direct Consolidation Loan. It may not be the servicer you selected in your application. 

The Department of Education will send you a summary that lists the loans that will be included in the consolidation and the repayment plan that you selected. You should review this information carefully and contact the Department if there are any problems.  If you do not contact them promptly, they will assume the information is correct and will finalize the consolidation.  

Repayment on your Direct Consolidation Loan will begin within 60 days after the new loan is issued. Your new loan servicer will let you know when the first payment is due and what your payment amount is. You can use Federal Student Aid’s Loan Simulator to help explore different repayment options, and you can request to change payment plans.  

What if I want to cancel my consolidation application? 

There is only a short window of time to cancel a consolidation after you apply. If your loan has not yet been disbursed, you can cancel your consolidation application by calling Aidvantage at 1-800-722-1300. While you are supposed to receive a notice that gives you 10 days to act before your application is finalized, borrowers have been receiving that notice too late. 

However, once your consolidation application has been finalized and your loan has been disbursed, you cannot undo a consolidation loan.   

When can I apply for consolidation?

You can apply to consolidate your loans while you are in repayment, in default, or in a grace period. If your loans are still in a grace period, you can ask the loan servicer to wait to process your application until closer to the time when your grace period ends, so you won’t have to start repaying before the end of your grace period.   

What can I do if I have problems with my consolidation application?

If you have any problems with your loan consolidation application, contact the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243 or file a complaint.