What is a federal direct student loan consolidation?

Federal direct student loan consolidation is a process by which a student can consolidate all of the federal direct student loans that they have taken to finance their college education into one single loan. A student has taken a federal direct student loan if they have a William D. Ford Stafford Loans, William D. Ford PLUS Loans, Direct Stafford Loans, and Direct PLUS Loans. They have taken a federal direct student loan in their loan bills come from the Direct Loan Servicing Center, or if their loan bills bear the name William D. Ford Federal Direct Loan Program or if their school is a Direct Loans Lending School. Any student who has taken a Federal Direct Student Loans such as the Direct Stafford Loan and Direct PLUS Loan is more likely to be approved for student loan consolidation than holding any other kind of loan.In order to get a Federal Direct Loan Consolidation, as a student, you need to have a Minimum amount outstanding of $10,000 in Federal direct loans and you must have graduated or no longer in school before applying. If a student has to qualify for direct consolidation loans, he/she must have at least one direct loan or Federal Family Education Loan (FFEL) program loan that is in grace, repayment, deferment, or default status.Borrowers who do not have direct loans can become eligible for a direct consolidation loan if they include at least one FFEL Loan and have been unable to obtain a federal consolidation loan with a FFEL consolidation lender or have been unable to obtain a federal consolidation loan with income-sensitive repayment terms acceptable to them.There are many advantages for a student who takes up federal direct loan consolidation. They have the benefit of reducing their monthly payment on student loan by 50 or more. Through consolidation, they have to make only one payment a month as against the multiple payments they would have to make for multiple loans. Their credit rating will improve with more cash inflow. The consolidation loan scheme will give them the option of choosing a repayment plan and term that matches with their financial situation.Additional benefits are a reduction in interest rate of the consolidated loan, if the student was to take up a package with such benefits. Federal direct loans consolidation application does not require any fees, credit checks, and application or origination charges.Direct Loans Consolidation can definitely give more financial breathing space for students to meet other expenses they are likely to incur after graduation. The period of repayment can be for a minimum of ten years to a maximum of thirty years

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