Loan Consolidation

A Direct Consolidation Loan allows you to combine multiple federal student loans into one loan with one payment and a single, fixed interest rate. If you decide to consolidate, you can choose your servicer. Good news! MOHELA can be your servicer! The entire process typically takes between four and six weeks from the date your application is received.

Before completing a consolidation application, carefully consider the following information to determine whether loan consolidation is the best option for you.


  • One monthly payment

  • Access to repayment plans that are not available to you unless you consolidate

  • Access to Public Service Loan Forgiveness, if your loan types were previously not eligible


  • Extending the amount of time it takes to repay your loan(s) through consolidation may increase the total interest to be paid.

  • Any outstanding interest on the loans you consolidate becomes part of the original principal balance on your consolidation loan. This means interest may accrue on a higher principal balance than if you had kept your loans separate.

  • Consolidating during the six-month grace period may forfeit the remainder of your grace period. However, you can indicate on the consolidation application if you would prefer to delay the consolidation to coincide with the end of your grace period.

  • The interest rate for a Consolidation Loan is weighted and rounded to the nearest 1/8th percent (0.125%). This may be higher than the interest rate of your loan(s) prior to consolidation.

  • Some active-duty military benefits may no longer apply if you consolidate

  • Loss of qualifying payments made prior to consolidation towards Public Service Loan Forgiveness and Income-Driven Repayment Plans, and possible loss of other federal student loan benefits. However, for a limited time, an Income-Driven Repayment Account Adjustment  this link will open in a new window may include payments made before consolidation towards forgiveness.

  • Loss of eligibility to defer payment on a Parent PLUS loan when the student is enrolled at least half-time.

  • Potential loss of borrower benefits such as interest rate discounts or principal rebates.

Ways to Apply for Consolidation

If you decide to apply to consolidation your loans, please continue to make payments until you receive notification that the consolidation has been completed.

Adding Loans to Your Direct Consolidation Loan

You can request to add an eligible loan(s) to a new Direct Consolidation Loan within 180 days of the consolidation loan being funded (disbursed). Search  this link will open in a new window for the "Direct Consolidation Loan Request to Add Loans", complete, and submit to:

C/O Aidvantage
PO BOX 300006
GREENVILLE, TX 75403-3006

Good to Know

Aidvantage manages the Consolidation Loan origination process on behalf of the U.S. Department of Education. After you apply for a Consolidation Loan, or request to add loans to your new Consolidation Loan, Aidvantage will be your point of contact for any questions you may have.

After Aidvantage processes your Consolidation Loan, they will send your new loan to MOHELA for servicing. We will send you notification after this occurs.

MOHELA will not have any information about your Consolidation Loan application status while it is being processed. To contact Aidvantage with questions, call 1-800-722-1300.