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Is Direct Loans the only servicer currently to process Loan Consolidations?

Is Direct Loans the only servicer currently to process Loan Consolidations?

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Asked by Bradon, Last updated: Nov 09, 2024

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justindrew8249

justindrew

justindrew8249
Justindrew

Answered Nov 04, 2019

Direct consolidation loans are currently the sole kind of federal student consolidation loan.

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John Smith

John Smith

John Smith
John Smith

Answered Sep 09, 2016

True-until recently, a borrower could consolidate his or her loans under either the federal family education loan program (ffelp) or the federal direct loan program (fdlp). however, recent legislation has amended the law that governs federal student loans. specifically, the health care and education reconciliation act of 2010 requires that no new loans may be made under the ffelp; any stafford, plus, or consolidation loan first disbursed on or after july 1, 2010, must be made under the fdlp. all federal student loan consolidations have been appointed to be processed by direct loans.
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