A Direct Consolidation Loan from the federal government allows you to consolidate (combine) multiple federal education loans into one loan.
The result is a single monthly payment for your federal student loans at one interest rate instead of multiple payments.
If you have older, variable rate loans, you can also lock in a fixed rate which can make it easier to plan for your financial future.
This is where the terms can get a little confusing.
Because of rising tuition and fees, most students will need to look outside of their own families to afford college costs.Up and Down arrows will open main tier menus and toggle through sub tier links.Enter and space open menus and escape closes them as well.The Direct Consolidation Loan program is for federal student loans only.This free program combines the balances of your existing federal student loans into new, single loan with an interest rate based on the weighted average of the loans you want to consolidate. This article on Direct Consolidation Loan goes into greater detail.) With this program, you retain all of the benefits and protections that are part of the federal student loan program.
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