If You Are Currently Enrolled In School, You Can't Consolidate Your School Loans

The Higher Education Reconciliation Act (HERA) of 2005 got rid of the portion that allowed a borrower of either the Federal Family Education Loan (FFEL) or Direct Loan and who is currently enrolled in school on at least a half-time basis to request to enter repayment early on your Stafford Loans if the lender approves. Now, repayment is defined as not beginning until 6 months and one day after the date the student ceases to carry at least one-half the normal full- time academic workload, as determined by the school. Therefore if you are a ffel or Direct Loan borrower and are still enrolled in school at least half-time you may no longer request to enter repayment early to apply for a FFEL or Direct Consolidation Loan.

If you want to apply for a Direct Loan Consolidation or an FFEL Consolidation you must contact the lender and complete an application.  A majority of the lenders provide you with the ability to request an application over the phone or to apply on-line. Once an application is completed and submitted, the lender will request information from your other lenders or from its own system to determine the amounts outstanding on your loans. You will then get notification about the consolidation loan, normal consumer disclosures, the amount owed, and if appropriate, where to make payments.