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The fixed rate is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest one-eighth of one percent.There is no cap on the interest rate of a Direct Consolidation Loan. Whom do I contact if I have questions about consolidation?
If you submitted your application online, your consolidation servicer’s contact information was provided at the end of the online process.
A Direct Consolidation Loan allows you to consolidate (combine) multiple federal education loans into one loan. Similarly, if you have Federal Perkins Loans and you are employed in an occupation that would qualify you for Perkins Loan cancellation benefits, you should not include your Perkins Loans when you consolidate.
The result is a single monthly payment instead of multiple payments. Leaving out your Direct Loans or Perkins Loans will preserve the benefits on those loans.
Repayment of a Direct Consolidation Loan will begin within 60 days after the loan is disbursed (paid out).
Your loan servicer will let you know when the first payment is due.