The Department of Education has guidelines that help determine the applicable loans that qualify in the consolidation of your Federal Student Loans. Usually, your payment is approximately 50% less than your current minimum payment and your interest rate decreases approximately 1-6%. When your eligibility is determined and approximate payment is established, the pertinent information needed for the student loan consolidation and all agreements and forms are sent to you for your signature. Your file is then reviewed once again prior to being sent to the Department of Education for their approval. The Department of Education, upon approval of the student loan consolidation, sends you a new promissory note to sign and return.
The U.S. Department of Education is the only lender for all loans in a Direct Consolidation Loan. Additionally, there are various repayment plans with several term lengths and may include an Income Contingent Repayment and an Income-Based Repayment Plan. You can switch repayment plans at anytime. If you select an Income Based Repayment Plan, you will only be able to select a standard repayment plan.
There is no minimum amount of student loan debt required to qualify for a U.S. Department of education Direct Consolidation Loan.