How It Works
Find everything you need to know about direct education loan consolidation here. We'll explain what it is and how the process works.
About Direct Education Loan Consolidation
Direct education loan consolidation bundles your many student loans into a single loan, usually with a lower interest rate. You can consolidate either private or federal loans with direct education loan consolidation. For federal loan holders, consolidation is a free program backed by the federal government. When you sign up for direct education loan consolidation, you will pay off your existing loans with a new loan. You will then make one monthly payment on your student loans instead of many, which saves you a great deal of time and hassle. You can qualify for direct education loan consolidation if you are no longer enrolled in school more than half time, have never previously consolidated, and have loans that are in a repayment or grace period. Learn more about our consolidation services on the next page.
Direct Education Loan Consolidation Process
We have broken the direct education loan consolidation process down into a few simple steps. Here is how it works:
- Complete our free, online application. We allow you to apply for direct education loan consolidation entirely online. You can consolidate your loans without ever having to leave the comfort of your home. You can even sign the application with our electronic signature technology.
- We will contact you within 15 minutes. If you applied between 8 AM and 10 PM EST, we will contact you via telephone within 15 minutes of receiving your application to complete the process. Our direct education loan consolidation representatives can answer any questions you may have and work out the details of your loan portfolio.
- Your loans are consolidated. After we have the details of your student loans and a completed application, we will write checks to your lenders to pay off your existing student loans. This step of the process is usually the most time-consuming.
- You make one payment to our service each month. Once your loans are consolidated, you will then make one payment to your direct education loan consolidation company each month. We can also arrange to have your payment automatically deducted from your account each month to save you the trouble.
