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Student Loan Eligibility

Student Loan Consolidation Eligibility

To qualify for a Direct Consolidation Loan, borrowers must have at least one Direct Loan or Federal Family Education Loan (FFEL) in grace, repayment, deferment, or default status. Loans that are in an in-school status cannot be included in a Direct Consolidation Loan.

NOTE: Borrowers whose consolidation applications are received on or after July 1, 2010, and before July 1, 2011, may qualify to consolidate loans in an in-school status into a Direct Consolidation Loan.


Borrowers can consolidate most defaulted education loans if they make satisfactory repayment arrangements with the current loan holders or agree to repay their new Direct Consolidation Loan under the Income Contingent or Income-Based Repayment Plan.


Borrowers who do not have Direct Loans may be eligible for a Direct Consolidation Loan if they include at least one FFEL loan and have been unable to obtain a Federal Consolidation Loan with an FFEL consolidation lender or have been unable to obtain a Federal Consolidation Loan with income-sensitive repayment terms acceptable to them or intend to apply for loan forgiveness under the Public Service Loan Forgiveness Program.


Borrowers who have only a Direct Consolidation Loan cannot consolidate again unless they include an additional loan.




Reproduced from U.S. Department of Education’s Federal Direct Consolidation Loans website.

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