Student loan consolidation
Student loan consolidation replaces your federal loans with a single new loan. A loan you receive on or after July 1, 2026 can be repaid only under RAP or the Tiered Standard Plan.
- 1A single loan and a single bill
- July 1, 2026: new consolidations get RAP or Tiered Standard
- Repayment can stretch as long as 30 years
- Free to apply, no cost
What the federal Direct Consolidation Loan program does
Your old federal loans get paid off, and you receive one new loan. You'll have one servicer and one payment. On the Standard Plan, older consolidation loans run 10 to 30 years.
Consolidating federal education loans through the Department of Education, or ED
Your application goes to the Department of Education, through studentaid.gov, and not to a private company. Applying costs you nothing. Servicers offer help at no cost; don't pay an outside company for help with federal loans. The Loan Simulator can also help you decide whether to consolidate.
Consolidating after July 1, 2026
Only Tiered Standard or RAP is available if you receive a Direct Consolidation Loan on or after July 1, 2026. When you consolidate on Tiered Standard, you can stretch repayment to 30 years at most. Before you combine student loans, check whether IBR works better for you.
A warning about Parent PLUS
When you consolidate on or after July 1, 2026 and parent PLUS loans are included, the plan is Tiered Standard only, and it isn't PSLF eligible. RAP isn't available for Parent PLUS loans or for consolidation loans that paid them off.
Getting out of default status
Another route out of default is consolidating into a Direct Consolidation Loan. A defaulted loan can be consolidated if you repay under an IDR plan or make three on-time payments first.
Who should avoid it?
If you're happy on IBR, skip it. A new consolidation locks you out of your IBR plan. If you want PSLF and you hold Parent PLUS loans, skip consolidation. Ana earns $45,000, and she carries older loans. Only RAP or Tiered Standard would be left for her after a new consolidation. She'd lose IBR if IBR costs her less.
Guides on related topics
Common questions
What does consolidating student loans give you?
It helps if a single bill is what you want, or if you need to leave default. It hurts when it locks you out of IBR.
Is it possible to consolidate a defaulted loan?
A defaulted loan can be consolidated if you repay under an IDR plan or make three on-time payments first.
Does consolidating federal government loans cost anything?
No. Servicers help you for free, so don't pay an outside company for help with federal loans.
Which method works best for consolidating federal student debt?
Go to studentaid.gov and apply there for a Direct Consolidation Loan. You can also use the Loan Simulator to decide whether consolidating makes sense. If you receive a Direct Consolidation Loan on or after July 1, 2026, the only plans available are Tiered Standard or RAP.
Would a student debt consolidation company work best for consolidating federal loans?
No. You can apply on your own, for free. Servicers provide help free of charge. Don't pay an outside company to help you with federal loans.
Sources: Federal Student Aid, consolidation and Federal Student Aid, getting out of default.