If you are a student running several loans, you may be finding it difficult monitoring and paying the monthly repayments. Federal Direct Loan Consolidation is the ideal solution that allows you to consolidate all your existing loans into one single loan. This makes it extremely easy to plan your budget and make a single repayment every month.

Similar to the Private Loan Consolidation schemes, this scheme offers borrowers a host of benefits that include easier and flexible repayment process, lowered rate of interest and better deferment options.

As a borrower, you can approach the direct loans servicing for consolidation. Here you will be offered three different types of loan options to choose from.

Direct Subsidized Consolidation - Direct subsidized consolidation is for Federal Student Loans that are qualified for accumulated interest subsidy. Direct loans, Federal Perkins Loans and FFELP come under this category.

Direct Unsubsidized Consolidation – Direct unsubsidized consolidation loan is offered for those who are running student loans that are not eligible for subsidies on interest. If you wish to consolidate your unsubsidized loan, then you are eligible for direct consolidation loan of the unsubsidized type.

Direct PLUS Consolidation Loan – If you are currently running direct PLUS loans and FFELP PLUS loans, these can be consolidated through the direct PLUS consolidation loan.

Time of repayment of your direct loan consolidation depends on your current individual situation such as job status and repayment capacity and your borrowing history. Consolidation process is simple and fast. Choose the best type of consolidation loan that suits your requirements. Opt for flexible repayment options that will eliminate stress and simplify monthly repayments to a great extent.

Direct loan consolidation is thus a blessing for those saddled with different student loans and struggle to monitor and pay the monthly instalments.