If you have multiple student loans and find managing multiple accounts difficult, you may consider getting your student loans consolidated. Keep reading to learn how to consolidate your student loans for Direct Federal Loans into one monthly loan payment.
Student loan consolidation through the government is Free for Direct Federal Loans only. This does not decrease your monthly payment, but it does take all of your federal loans and give you one fixed interest rate.
To begin the process, you will need:
- Your FSA ID
- Personal information
- Financial information (loans information, account statements, and bills)
Second, you will need to complete a Federal Direct Consolidation Loan Application and Promissory Note application.
The breakdown of the application is as follows:
- Borrower information
- Reference information (you will need two US resident adults you have known for at least three years with separate addresses.)
- Loans that you want to consolidate
- Loans that you do not want to consolidate
- Repayment plan selection (standard, graduated, extended repayment plan; IBR, ICRR, and Pay as You Earn repayment plan)
- Borrower Understanding, Certifications, and Authorizations
- Promise to Pay
- Note Term and Conditions
- Important Notices
- Borrower’s Rights and Responsibilities Statement
Once you have everything that I’ve stated above and your application is complete, you will log in to your account and begin the application.
The entire process should take no more than 30 minutes, and remember to consolidate your student loans is FREE with Direct Federal Loans.
Update:
Due to the pandemic, the student loan payment pause is scheduled to end after May 1, 2022.
It would be best if you began evaluating all of your options for repayment in the event the student loan relief program isn’t extended.
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