University of Houston-Victoria

Department with Video

Loan Consolidation

A Direct Consolidation Loan allows you to consolidate (combine) multiple federal education loans into one loan. The result is a single monthly payment instead of multiple payments. 

There is no application fee to consolidate your federal education loans into a Direct Consolidation Loan. If you are contacted by someone offering to consolidate your loans for a fee, you are not dealing with one of the U.S. Department of Education’s (ED's) consolidation servicers.

An overview of consolidation is located at

To apply for a Direct Consolidation Loan, you must follow the process outlined below.

A consolidation applicant will use the Direct Consolidation Loan application on the 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 on or after January 2, 2014.

Students will require a FSA ID and a Password before proceeding.