Consolidating direct plus loans

You may be able to extend your repayment terms, pay a lower average interest rate, reduce your monthly payment amount, fix your interest rate or simply benefit from having a singular, simplified and streamlined monthly payment amount.

However, loan consolidation is not always the answer.

If you would like to add other eligible loans, your servicer must receive your Request to Add Loans Form within 180 days from the date your Direct Consolidation Loan is completed (originated).

You may end up paying more in total interest after you consolidate your student loan debts.

You could lose some of the benefits from your subsidized student loans.

Your grace period on some loans could end prematurely, or you may end up consolidating at the wrong time – too early or too late.

Not all student loan debts can be consolidated, although most federal loans can.

Loans that can be consolidated include direct subsidized and unsubsidized loans, subsidized and unsubsidized Stafford loans, direct PLUS loans, SLS loans, Federal Perkins loans and Health Education Assistance loans, among others.

Private education loans are not eligible for consolidation.

CFDA Number: 84.268 Program Type: Loans Also Known As: Direct Loan program; Direct Loans.

Direct Loans includes four components: Direct Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans.

The interest rate for a Direct Consolidation Loan is based on the weighted average of the loans that are consolidated rounded up to 1/8 of a percent.

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