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Am I Eligible?

To qualify for a Direct Consolidation Loan, borrowers must have at least one Direct Loan or Federal Family Education Loan (FFEL) that is in grace, repayment, (including deferment or forbearance), or default status. Loans that are in an in-school status cannot be included in a Direct Consolidation Loan.

NOTE: Borrowers whose consolidation applications are received on or after July 1, 2010 and before July 1, 2011 may qualify to consolidate loans that are in an in-school status into a Direct Consolidation Loan. Click here for more information and the eligibility requirements for this temporary provision.

Borrowers can consolidate most defaulted education loans, if they make satisfactory repayment arrangements with the current loan holders or agree to repay their new Direct Consolidation Loan under the Income Contingent or Income Based Repayment Plan.

Borrowers who do not have Direct Loans may be eligible for a Direct Consolidation Loan if they include at least one FFEL Loan and have been unable to obtain a Federal Consolidation Loan with a FFEL consolidation lender or have been unable to obtain a Federal Consolidation Loan with income-sensitive repayment terms acceptable to them or intend to apply for loan forgiveness under the Public Service Loan Forgiveness Program.

Borrowers who have only a Direct Consolidation Loan cannot consolidate again unless they include an additional loan.

Borrowers may consolidate a single Federal Consolidation Loan made under the FFEL Program into a new Direct Consolidation Loan without including an additional loan if the Federal Consolidation Loan is delinquent and has been submitted by the lender to the guaranty agency for default aversion, or if the Federal Consolidation Loan is in default. In such cases, the borrower must agree to repay the new Direct Consolidation Loan under the ICR Plan or the IBR Plan. Borrowers may also consolidate a single Federal Consolidation Loan into a new Direct Consolidation Loan to use the Public Service Loan Forgiveness program, or the no accrual of interest benefit for active duty service members.

NOTE: Your federal loan servicer has information on the Public Service Loan Forgiveness Program and the no accrual of interest benefit for active duty service members. You can also find information about these benefits in the Borrower's Rights and Responsibilities section of the Direct Consolidation Loan Application and Promissory Note.

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