Loan Consolidation

Federal Loan Consolidation

Through the Department of Education, students may combine multiple federal education loans into a single fixed-interest rate loan. Some federal student loan borrowers benefit from the option of a Direct Consolidation Loan as it results in a single monthly loan payment. 

What you need to know:

  • Consolidation may not benefit every student borrower. There are pros and cons to loan consolidation. Students are advised to research and thoroughly evaluate this option. 
  • Loan consolidation may make your education debt repayment more manageable as it combines multiple federal loans with varying interest rates and due dates into one fixed-interest loan.
  • Borrowers who have consolidated may have lower monthly payments through extending their repayment period.
  • Most federal education loans are eligible for consolidation. Visit the Loan Consolidation Information webpage for further information.  Note:  Private loans or state education loans are not eligible for the Direct Consolidation Loan option.  Also, Direct Parent PLUS loans are the sole responsibility of the parent-borrower. Therefore, students cannot take responsibility over Direct Parent PLUS loans even through loan consolidation. 
  • Loan consolidation may increase the repayment term, which will increase the total interest paid over the life of the loan.
  • Loan consolidation may not lower your interest rate. The fixed-interest rate on a consolidation loan is a weighted average of the interest rates on all loans being consolidated and then the rate is rounded up by 1/8th of 1 percent. 
  • Consolidating may affect qualifying payments towards federal loan forgiveness programs.


  • The Loan Consolidation Information Call Center: 1-800-557-7392

How to Apply:

Complete a Consolidation Loan Application and Promissory Note via Look for the link under “Repayment & Consolidation.” 

Private Loan Consolidation

Multiple private loans (also referred to as alternative education loans) may be consolidated into a single loan for a simpler monthly payment option. ELMSelect offers a list of preferred private consolidation lenders. Search for “Sacred Heart University” under schools and select “Private Consolidation” from the dropdown menu. There are both variable and fixed interest rate options available. Students interested in private loan consolidation are encouraged to carefully review the terms, conditions, rates, and disclosures. Please contact lenders for specific questions.