Special Direct Consolidation LoansBeginning January 17, 2012 and ending June 30, 2012, the Department of Education will offer Special Direct Consolidation Loans to eligible federal loan borrowers. To be eligible for this Special Consolidation Loan, a borrower must have
Although you must have at least one loan owned by the Department of Education and one commercially held FFEL loan to qualify for this Special Consolidation, only your commercially-held FFEL loans are eligible for consolidation under this program. Eligible loans include
These loans must be in grace, repayment, deferment or forbearance to be eligible and cannot be in default or loans that the borrower is seeking to have discharged through bankruptcy. Loans that are in an in-school status are not eligible for consolidation. Previously defaulted loans that have been rehabilitated are eligible for consolidation.
Ineligible loans are
Benefits of Consolidating under this Special Direct Loan Consolidation:
If you are eligible to consolidate your loans under this limited-time offer, you will be notified by one of the Department of Education’s servicers and provided with instructions on how to apply on-line. Department of Education servicers for this special initiative are FedLoan Servicing (PHEAA), Great Lakes Education Loan Services, Inc., Nelnet and Sallie Mae.
If you are interested in obtaining a Special Direct Consolidation Loan, it is critical that you do not initiate the traditional Direct Consolidation Loan process at the http://loanconsolidation.ed.gov/ website, as this will preclude you from eligibility for the Special Direct Consolidation Loan.
The same five repayment options are available to you under this Special Direct Consolidation:
Remember, your repayment term does not start over under this Special Consolidation. Each commercially-held FFEL loan that you consolidate will retain its original repayment term.
For further information, call 1-800-4FED-AID (1-800-433-3243) or log on to http://studentaid.ed.gov.