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Federal Consolidation Loans enable borrowers to combine various existing federal education loans into a single, more manageable loan. Repayment terms can be extended, in some cases up to 30 years, based on the amount being consolidated. Consolidation loans do not affect loan size, but they do impact the period of repayment.

There are multiple options for consolidation.

If you have $5,000 or more in education loans, you may qualify for loan consolidation under the unILoan Program (offered by the Illinois Designated Account Purchase Program [IDAPP], a division of ISAC).

If you have at least one Federal Direct Loan, or have been unable to obtain a Federal Consolidation Loan for your FFELP loans, you may be eligible to apply for a Direct Consolidation Loan.

For Federal Consolidation Loans, the interest rate is the weighted average of the interest rates on the loans being consolidated, rounded to the nearest higher 1/8th of one percent. The interest rate may not exceed the maximum rate of 8.25%.

Federal student loans can be consolidated only one time. Your lender(s) can provide more information about consolidating your loans and help you determine if and when consolidating might be the right option for you.

If you have questions about the number of loans you have borrowed, the amount of each loan, or your outstanding balance(s), check with the National Student Loan Data System (NSLDS).