Even if your loans are all from the Federal Direct Loan Program, it still pays to simplify them.
The Direct Consolidation Loan Program lets you combine one or more federal student loans into a single new loan. The following are some of the details about the Direct Consolidation Loan Program: Consolidation loans do not have six- or nine-month grace periods the way some other loans do—you must begin repayment on a consolidation loan within 60 days of disbursement, regardless of whether the grace periods on the individual loan(s) has ended.
So instead of making several different student loan payments, you make one monthly payment for all your federal student loans. A question you will have to consider if you choose to consolidate is when to do it—before or after the grace periods on your individual loan(s) end.
(For background reading, see .) You took out one loan per semester.
If you began this process before July 2010 – when all federal loans started coming directly from the U. Department of Education – you may have borrowed through the Federal Family Education Loan Program. If you finished in four years, you could have ended up with as many as eight different loans from up to eight different banks.
Your federal loans will move to 1 new consolidated loan under 1 servicer.