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 studentaid.ed.gov.
To apply for a Direct Consolidation Loan, an applicant may use the Direct Consolidation Loan application on Studentaid.gov. Students will require a FSA ID and a Password before proceeding. A link to the paper Consolidation Application is also available on the website if the borrower prefers the paper application method.