Consolidating federal student loans may be a good strategy to lower monthly payments or to get out of default, but it is not always a good idea.
If you have several federal education loans, you may want to consider combining them into one new loan with one monthly payment.
This removes the burden from the borrower of trying to keep track of many different loans, with different lenders, balances, and interest rates.
Consolidation programs exist for both federal and private student loans, but the purpose of this page is to discuss federal student loan consolidations.
Although all of these different loans may be consolidated, you must have at least one outstanding FFEL or Direct Loan to obtain a Direct Consolidation Loan.
A student loan consolidation takes the borrowers loans and combines all the loans into one new loan with one lender, and one weighted average interest rate.