The Department has said it routinely charges a lower percentage.

You are also ineligible to consolidate if your loans have been reduced to judgment (unless you vacate the judgment) or if there is a wage garnishment order against you. The fixed rate is based on the weighted average of the interest rates on the loan at the time of consolidation, rounded up to the nearest one-eighth of a percentage point.

The interest rate must not exceed 8.25% for consolidation loans prior to July 2013.

You can consolidate all, just some, or even just one of your student loans.

Direct consolidation loans are now the only type of federal student consolidation loan.

If you apply using, you will need to sign in using your personal identifiers and PIN. You are required to select from the choices listed by the Department of Education). If you do not contact them within 15 days, they will assume the information is correct and will process the consolidation.

The electronic application consists of five steps: 1. If may make this choice on-line or if you are sending in a paper application, you should send directly to the servicer you choose. The Department provides some general information about servicer performance in the on-line data center and quarterly performance reports. (You should check the letter you receive to make sure that the time period has not changed).Whether you are current on your loans or in default, you should consider the pros and cons of consolidation before starting the process.Among other potential down sides, you may lose important rights by consolidating.Consolidation loan borrowers should not be charged origination fees.This section has information if you are current on your loans or if you want to consolidate to get out of default.These borrowers should also be able to consolidate and choose ICR.