manage your federal student loans through the consolidation and servicing process
More than $100 billion goes into federal education loans each year to help students with financing their education. Chances are you have some federal student loans and as a borrower, you have certain rights and responsibilities, one of which is paying back your loans. If you decide to consolidate your federal loans with the Department of Education through Direct Loans, understanding consolidate and what's expected of you as the borrower will make the process more manageable.
Instructions
Preparing and Applying for Direct Loan Consolidation
1. Log-in to the National Student Loan Data System website. Click on each loan and print or save the file.
2. Print the necessary forms from the Direct Loan website, including the Repayment Plan Selection form. Depending on your individual financial situation and repayment plan decision, you may also need to print and complete the Consent to Disclosure of Tax Information and Alternative Documentation of Income forms.
3. Complete your Direct Loan Consolidation application online. Sign your online application and promissory note with your PIN. If you prefer, download a paper copy of the application off the website and mail it along with your required forms to the Direct Loan Consolidation Center. Depending on the repayment plan you select, it may be necessary to mail a copy of your most recent tax returns with the forms.
4. Check your loan summary sheet for any inaccuracies and report them to Direct Loan Consolidation. You will receive your summary sheet within 10 days of your loan balance being certified with the Direct Loan Consolidation Center.
5. Call the Direct Loan Servicing Center to confirm they have all the required paperwork once you've received a letter from Direct Loans entitled Consolidation Disbursement(s) Made. If additional paperwork is necessary, promptly mail your forms to avoid possible changes with your selected repayment plan.
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