A Direct Consolidation Loan allows you to combine multiple federal student loans into one loan, one payment and one fixed interest rate. If
you decide to consolidate, you can choose your servicer – Good News, MOHELA can be your choice! The entire process typically takes between four and six
weeks from the date your application is received.
Before completing a consolidation application, carefully consider the following information to determine whether loan consolidation is the
best option for you.
IDR Account Adjustments
On April 19, 2022, the U.S. Department of Education (ED) announced several changes and updates that will bring borrowers closer to
forgiveness under income-driven repayment (IDR) plans. If you have commercially held FFEL loans, you can only benefit from the IDR
account adjustment if you consolidate before ED completes implementation of these changes, which is estimated to be no
sooner than Jan. 1, 2023.
For more information or to consolidate, please visit StudentAid.gov/consolidation.
Learn more about this IDR account adjustment
If you currently work or previously worked full-time for a government or not-for-profit, you may qualify for Public Service Loan
forgiveness. Before you consolidate or apply for PSLF, you can verify eligible employment by completing Step 1 of the
PSLF help tool at StudentAid.gov.
Checklist to Assist with Deciding if Consolidation is the Best Option for You:
Learn more about student
loan consolidation about student loan consolidation or complete an application to consolidate your loans.
Ways to Apply for Consolidation
If you decide to submit a consolidation request, please continue to make payments until you receive notification that the consolidation has been completed.
Adding Loans to Your Direct Consolidation Loan
You may request to add more eligible loans to a new Direct Consolidation Loan within 180 days of the consolidation being made (disbursed). Please
Request to Add Loans form