Us government consolidating student loans

Employees with Perkins loans or those serving in the military should talk to their servicers about the risks associated with consolidation.Consolidation loans provide access to several alternative repayment plans besides the 10-year repayment that is standard for federal loans.Federal loan consolidation is an option for borrowers who have multiple student loans or parent education loans.You can consolidate your federal loans into one monthly payment through the government’s Federal Direct Consolidation Loan Program.Loan consolidation can be used to simplify monthly payments by rolling multiple loans into one loan.While you generally won’t get an interest rate break, you will have a single monthly payment for your new federal direct consolidation loan.When you consolidate your loans, your repayment length is extended.Federal loan consolidation will not lower your interest rate.

If you have federal loans originated under the Federal Family Educational Loan (FFEL) program or the Perkins loan program, you may be able to consolidate those loans into a new Direct Loan to qualify for Public Service Loan Forgiveness (PSLF).

You can learn more about what type of loan you have through the National Student Loan Data System (NSLDS), available at


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