A Direct Consolidation Loan is a type of federal student loan that allows borrowers to combine multiple federal student loans into a single loan with a fixed interest rate.
Direct Consolidation Loan can provide access to additional repayment plans. Depending on the repayment option you select, the length of your consolidation loan can reach 30 years.
To be eligible for a Direct Consolidation Loan, a borrower must have at least one federal student loan that is in grace, repayment, deferment, or default status.
Most federal student loans are eligible including, Subsidized Federal Stafford Loans, Direct PLUS Loans, Federal Perkins Loans, Guaranteed Student Loans and many more.
Interest rate on a Direct Consolidation Loan is fixed that is based on weighted average of the interest rates on federal student loans being consolidated, rounded up to the nearest ⅛ of 1%.