Applying for a Department of Education Consolidation Loan

If you are eligible, applying for a Department of Education consolidation loan can be done quickly and easily. This information will help you prepare your application.

Direct Consolidation Loan

Direct Consolidation Loan (DCL) is a government-sponsored program that allows college students to combine their existing multiple student loans into one single loan. This program is administered by the Department of Education and was created under both the Federal Family Education Loan (FFEL) Programs and the Direct Loan Program. The purpose of the education consolidation loan is to help students manage their debts through lower interest rates, lower monthly payments and extended repayment periods.

Advantages of Consolidation Loans

The federal consolidation loan program offers numerous benefits to the borrowers. Aside from the fact that several education loans can be fused into one, the students can choose repayment options that are suitable for their financial condition and can switch repayment plans anytime they want. Moreover, monthly payments are reduced compared to payments made with multiple loans and students will retain their subsidy benefits.

Student's Eligibility

Students with Direct Loan or a FFEL under a certain condition like repayment, is in grace, default or deferment status, are qualified to apply the consolidation loan program. Individuals whose loans are under an "in-school status" are not eligible for DCL. Borrowers who do not have a Direct Loan but wish to apply for the program should have at least one existing FFEL and should not have existing federal consolidation loans from any lender.

Types of Loans to Consolidate


The following subsidized and unsubsidized loans are eligible for the education consolidation loan program offered by the federal government:

  • Subsidized, Unsubsidized and Non-subsidized Federal Stafford Loans
  • Direct Subsidized and Unsubsidized Loans
  • Subsidized and Unsubsidized Federal Consolidation Loans
  • Direct Subsidized and Unsubsidized Consolidation Loans
  • Federal Insured Student Loans
  • Guaranteed Student Loans
  • Federal PLUS Loans
  • Direct PLUS Loans
  • Direct PLUS Consolidation Loans
  • Federal Perkins Loans
  • National Direct Student Loans
  • National Defense Student Loans
  • Federal Supplemental Loans for Students
  • Parent Loans for Undergraduate Students
  • Auxiliary Loans to Assist Students
  • Health Professions Student Loans
  • Health Education Assistance Loans
  • Nursing Student Loans
  • Loans for Disadvantaged Students

Application Options

Students who meet the Direct Consolidation Loan program criteria can submit their applications in three ways:

  • Internet - Visit the DCL's home page and fill in the online forms.
  • Telephone - Students with Direct Loans can apply by calling this toll-free number 1-800-557-7392.
  • Postal mail - Download the required application documents from DCL's website, print and complete the forms, and mail to: U.S. Department of Education, Consolidation Department, P.O. Box 242800, Louisville, KY, 40224-2800


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