Direct Consolidation Loan
A federal loan that combines several federal student loans into one, at the weighted average of their rates rounded up to the nearest one-eighth of a percent.
A Direct Consolidation Loan keeps your loans federal and gives you one monthly bill. It doesn't lower your rate, and once done it can't be reversed.
Under the One Big Beautiful Bill Act, a consolidation loan made on or after July 1, 2026 counts as a new loan. That means all your Direct Loans can then be repaid only under the Repayment Assistance Plan or the Tiered Standard Plan.