Note: Big changes are coming to the student loan system due to a new law and recent court cases. Key deadlines are approaching for borrowers who want to take advantage of current relief. Stay informed by signing up for updates from NCLC and checking studentaid.gov.
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 may still want to consolidate it to make it eligible for a relief program without losing benefits on your other Direct Loans. 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.
When you apply, you will have to choose a repayment plan. And if you choose an income-driven repayment (IDR) plan, you’ll be asked to submit an application for the IDR plan as well. For more information, see our page on choosing a repayment plan.
You will likely be asked to select a loan 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.
Pro Tip: It may be helpful to consolidate some loans separately. Although this may not seem logical, 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. If you end up defaulting on your loans in the future, you can consolidate the two consolidation loans together into a new consolidation loan to get out of default (1st Direct Consolidation Loan + 2nd Direct Consolidation Loan = new Direct Consolidation Loan). If you want to create two separate consolidation loans, you will need to submit an application to create each new 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.
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
- Instructions for Direct Consolidation Loan Application and Promissory Note
- Direct Consolidation Loan Application and Promissory Note
After you complete the application, send the forms to one of the loan servicers below. You can choose which loan servicer you send these forms to.
EdFinancial
C/O Aidvantage
PO Box 300008
Greenville, TX 75403-3008 USA
800.722.1300
Aidvantage
Attn: ED Loan Consolidation
PO Box 300005
Greenville, TX 75403-3005 USA
800.722.1300
CRI
CRI
PO BOX 8310, Lincoln, NE 68501
USA
833.355.4311
cri.studentaid.gov
What happens after I apply for consolidation?
After you apply for consolidation, your application will be processed, and 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 process the consolidation.
While your new monthly payment is being calculated, you may be asked to pay an initial amount that covers the monthly interest. If you cannot afford this payment, you may request a temporary forbearance that will last until you are notified of your actual payment.
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.
When can I apply for consolidation?
You can apply to consolidate your loans while you are in repayment or 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.
If your loans are in default and you want to use consolidation to get out of default, there are some additional steps you have to take. See our page on consolidating your loans to get out of default for more information.
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 complaints.
