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How does the loan consolidation process work?

April 26, 2017consolidation loan process

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How does the loan consolidation process work?

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A. Once a student graduates or chooses to no longer attend school on a half-time basis, the student can contact the Direct Loan Program for an application for a Direct Consolidation Loan, which will combine the FFELP and Direct Loans into a single loan. When it comes time to begin repaying the loans, the borrower will be provided with several options concerning consolidation and will be able to choose which one has the greatest advantage. Students can move all their loans to Direct Loans or they can move all loans to FFELP. The choice will be up to the student.