Direct Consolidation Process on StudentLoans.gov Web Site
A consolidation applicant will use the Direct Consolidation Loan application process on the StudentLoans.gov Web site if the applicant
- Has no defaulted federal education loans;
- Has one or more defaulted federal education loans, none of which are assigned to the Department; or
- Needs to take action on an application the applicant submitted via StudentLoans.gov on or after January 2, 2014.
The StudentLoans.gov Web site is available at www.studentloans.gov.
New Direct Consolidation Loan Process – Applicant Information
An applicant who uses the new Direct Consolidation Loan process will sign in to StudentLoans.gov using his or her personal identifiers and Federal Student Aid PIN to electronically complete the Federal Direct Consolidation Loan Application and Promissory Note.
Note: Although we strongly encourage electronic completion of the application, an applicant will be able to download and print a paper application from StudentLoans.gov for submission by U.S. mail.
The electronic application on StudentLoans.gov consists of five steps: 1 – Choose Loans & Servicer, 2 – Repayment Plan Selection, 3 – Terms & Conditions, 4 – Borrower & Reference Information, and 5 – Review & Sign.
- 1 – Choose Loans & Servicer
In this step, a National Student Loan Data System (NSLDS) lookup will be performed, and information about an applicant’s federal education loans will populate within the application. The applicant will have the opportunity to add loans to and/or remove loans from the information obtained from the NSLDS.
Also in this step, an applicant who has at least one loan that is still in the grace period and wants to consolidate that loan will be able to select to have the processing of his or her application delayed until closer to the end of the grace period.
Finally in this step, an applicant will choose the federal loan servicer that he or she wants to complete the consolidation. We have four consolidation
servicers—FedLoan Servicing (PHEAA), Great Lakes Educational Loan Services, Inc., Nelnet, and Sallie Mae—from which an applicant may choose.
- 2 – Repayment Plan Selection
In this step, an applicant will select the repayment plan under which he or she wants to repay the Direct Consolidation Loan. When making this selection, an applicant who is interested in one of the “income-driven” repayment plans will be able to complete the Electronic Income-Based Repayment (IBR)/Pay As You Earn/Income-Contingent Repayment (ICR) Plan Request as part of the Direct Consolidation Loan process.
- 3 – Terms & Conditions
In this step, an applicant will review terms and conditions as well as the Privacy Act notice.
- 4 – Borrower & Reference Information
In this step, an applicant will enter address, contact, employer, and reference information.
- 5 – Review & Sign
In this step, an applicant will review information and edit, if necessary, before signing and submitting the Federal Direct Consolidation Loan Application and Promissory Note.
Note: An applicant who is logged in to StudentLoans.gov and completing the electronic application may request technical assistance by clicking on the Contact Us tab in the top menu bar of StudentLoans.gov. The applicant can 1) complete and submit the feedback form or 2) click on Additional Information and contact the Student Loan Support Center at the phone number provided.
Once an applicant submits his or her application electronically via StudentLoans.gov or by mailing a paper application, the consolidation servicer will complete the actions required to consolidate the applicant’s eligible loans. The consolidation servicer will be the applicant’s point of contact for questions related to his or her consolidation application.
Key actions that the consolidation servicer will complete include the following:
- Review the application and follow up with the applicant as necessary to complete or correct information.
- Use the Federal Direct Consolidation Loan Verification Certificate to confirm with the current loan holder the eligibility and payoff amount of each loan the applicant wants to consolidate.
- Confirm with the applicant the loans that will be part of the consolidation.
- Pay off each eligible loan the applicant wants to consolidate.
- Determine the applicant’s eligibility for the repayment plan selected in the application.
- Begin servicing the new Direct Consolidation Loan.
- Report the new Direct Consolidation Loan to the NSLDS.
Loans Eligible for Consolidation
- Subsidized Federal Stafford Loans
- Direct Subsidized Loans
- Subsidized Federal Consolidation Loans
- Direct Subsidized Consolidation Loans
- Federal Insured Student Loans (FISL)
- Guaranteed Student Loans (GSL)
- Unsubsidized and Nonsubsidized Federal Stafford Loans
- Direct Unsubsidized Loans, including Direct Unsubsidized Loans (TEACH) (converted from TEACH Grants)
- Unsubsidized Federal Consolidation Loans
- Direct Unsubsidized Consolidation Loans
- Federal PLUS Loans (for parents or for graduate and professional students)
- Direct PLUS Loans (for parents or for graduate and professional students)
- Direct PLUS Consolidation Loans
- Federal Perkins Loans
- National Direct Student Loans (NDSL)
- National Defense Student Loans (NDSL)
- Federal Supplemental Loans for Students (SLS)
- Parent Loans for Undergraduate Students (PLUS)
- Auxiliary Loans to Assist Students (ALAS)
- Health Professions Student Loans (HPSL)
- Health Education Assistance Loans (HEAL)
- Nursing Student Loans (NSL)
- Loans for Disadvantaged Students (LDS)