You are eligible to consolidate with the Direct Loan program as long as you have at least one FFEL or Direct Loan.
Direct Consolidation allows defaulted borrowers to make three consecutive reasonable and affordable monthly payments or agree to pay under Income Driven Repayment.
WARNING: It is very dangerous to consolidate federal loans into a private consolidation loan.
This is because you will lose your rights under the federal loan programs once you choose to consolidate with a private lender.
Once you are out of default, you can also choose one of the income-driven repayment plans.
And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free. Private consolidation is often referred to as refinancing.
We believe everyone should be able to make financial decisions with confidence. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. " There are two types of student loan consolidation: federal and private.
You can also consolidate with Direct Loans to use the public service forgiveness program or the limits on interest accrual for military service-members.
If you defaulted on a Direct consolidation loan, you cannot consolidate again with either program unless you are adding new loans to the consolidation. You can look into getting out of default by rehabilitating your loan.