Many students and parents that have multiple Direct Loans are faced with paying multiple loans every month, which can be very time consuming and expensive.  Consolidating your Direct Loans can be advantageous, since it will lower your monthly Direct Loan Payment and usually offers a lower interest rate. 

A Direct Loan Consolidation will lower you monthly payment because instead of having multiple payments with various minimum payments, you now have one low monthly payment.  Also, by completing a direct loan consolidation you will have one interest rate instead of the various student loan interest rates.  This will save you money over the long run, since you will only have one low consolidated interest rate. 

Borrowers must be aware that once they’ve completed a direct loan consolidation, they will not be able to consolidate the same Direct Loans in the future.  All loans can only be consolidated once.  Any new direct loan that was created after the consolidation is not affected by this policy.

Below is a chart that shows the current Direct Loan Consolidation Interest Rate: