To qualify for a Direct Consolidation Loan, borrowers must have at least one
Direct Loan or
Federal Family Education Loan (FFEL) that is in
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.
NOTE: The Direct Loan Servicing Center has information on the Public Service Loan Forgiveness Program.