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.
If you are consolidating your loans out of default, you must agree to either repay the new Direct Consolidation Loan under an IDR plan (by applying for an IDR plan 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 IDR makes sense as IDR plans are typically more affordable than other repayment options.
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, 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 IDR if you choose to, and you may be able to import your income from your tax return. If you are applying using a paper application, you can submit a paper application to enroll in an IDR plan 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 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: 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.
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
- Direct Consolidation Loan Application and Promissory Note
- Direct Consolidation Loan Request to Add Loans
- Repayment Plan Request
- Income-Driven Repayment Plan Request
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.
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 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.
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 complaints.
