Consolidating loans from different lenders
You can combine both federal and private student loans, should you choose to do so. In contrast, student loan consolidation typically refers to the federal program known as the Direct Consolidation Loan; although sometimes people use the term ‘consolidation’ to simply describe the merging of many loans into one.The Direct Consolidation Loan program is for federal student loans only.For more information, visit our Repayment plans section.Close Consolidation can be a good repayment option, but it's not for everyone.
This federal program lets you combine multiple federal student loans into 1 new loan—with 1 monthly payment.In certain situations, your student loan may be forgiven, cancelled, or discharged.This means you no longer have to pay back the money that you borrowed—and your debt is erased. Department of Education’s Federal Student Aid website.Even if your loans are all from the Federal Direct Loan Program, it still pays to simplify them.You can contact your lenders and/or the federal government's direct loan program to combine these loans into one Direct Consolidation Loan.