Loan Consolidation

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.

alert icon

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

Learn more about this IDR account adjustment .

alert icon

PSLF Information

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


  • One monthly payment, one billing statement, one servicer

  • Higher variable interest rates will be calculated to provide a fixed interest rate

  • No fee to consolidate

  • Access to repayment plans that may not have been available to you unless you consolidate


  • Extending the months/years to repay your loan(s) through consolidation may increase the total interest to be paid

  • Consolidating during grace period may forfeit the remainder of your grace period, however you can indicate on the consolidation application if you would prefer to delay the consolidation to coincide with the end of your grace period

  • Interest rate for consolidation is weighted and rounded to the nearest 1/8th percent which may be higher than the interest rate of your loan(s) prior to consolidation

  • Some active duty military benefits for your student loan(s) may no longer apply if you consolidate

  • Loss of qualifying payments already made prior to consolidation towards Public Service Loan Forgiveness and Income-Driven Repayment Plans, and possible loss of other federal student loan benefits. However, for a limited time an Income Driven Repayment Account Adjustment may include payments made before consolidation towards forgiveness

  • Loss of eligibility to defer payment on a Parent PLUS loan when the student is enrolled at least half-time

Checklist to Assist with Deciding if Consolidation is the Best Option for You:

  1. Review all of your loans to determine if the type of loan is eligible for consolidation (you can access your information via National Student Loan Data System (NSLDS))

  2. For eligible loan types, you must be out of school or attending school less than half-time

  3. Calculate the total amount of the monthly payments you are paying or are scheduled to pay for the loan(s) you wish to consolidate

  4. Calculate the approximate monthly payment if you consolidate - For the loan(s) you wish to consolidate use the weighted average interest rate rounded to the nearest 1/8th percent, the total balance (principal and interest) and the maximum number of years to repay based on the total balance

  5. Determine if the fixed interest rate for the consolidation loan makes financial sense for you

  6. Determine if any benefits you are eligible for will be lost if you consolidate

  7. Determine if you will qualify for repayment plans that you are not otherwise eligible unless you consolidate

  8. Make a decision 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

  • Online: Apply on (MOHELA is included in your options for your loan servicer)

  • Mail: Print, complete and mail a paper application
    To request MOHELA as the servicer of your new consolidation loan, include a letter with your consolidation application listing MOHELA.

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:

C/O Aidvantage
PO BOX 300006
GREENVILLE, TX 75403-3006