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.
Income-Driven Repayment Account Adjustment
In April 2022, the U.S. Department of Education announced several updates that will bring borrowers closer to forgiveness under
income-driven repayment (IDR) plans. Any borrowers with loans that have accumulated eligible time in repayment of at least 20 or 25
years will see automatic forgiveness, even if they are not currently on an IDR plan.
If you have Perkins loans, HEAL loans, or commercially held FFELP loans you can only get the full benefits of the one-time
account adjustment if you consolidate by the end of 2023.
For more information, please visit StudentAid.gov/IDRAdjustment.
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
submit your "Request to Add Loans form" to:
Note: Aidvantage manages the consolidation process on behalf of the U.S. Department of Education. After you apply
for consolidation or request to add loans to your consolidation, Aidvantage will be your point of contact for any questions you may
have about your consolidation application. After Aidvantage completes the origination of your consolidation loan, only then will MOHELA
receive your new loan for servicing. We will send notification after this occurs.
MOHELA will not have any information about your consolidation application status after it has been submitted on StudentAid.gov, or
mailed to the above address. To contact Aidvantage directly, please call: 1-800-722-1300.