FFEL Loans, also known as Federal Family Education Loans, can be consolidated into a Direct Consolidation Loan, providing access to income-driven repayment plans like Revised Pay As You Earn and Income-Based Repayment. This consolidation also enables eligibility for loan forgiveness programs, such as Public Service Loan Forgiveness and Income-Driven Repayment Plan Forgiveness.
Usually, consolidation involves risks, like losing previously earned PSLF and repayment plan forgiveness credit. But the federal government has waived this penalty for those who consolidate before the end of 2023.
By consolidating before the deadline, borrowers can benefit from the IDR Account Adjustment, which maintains qualifying payments for loan forgiveness programs and grants bonus credit for certain forbearance and deferment periods.
Commercially-held FFEL loans — i.e., those loans with AES, Navient, PHEAA, and so on, can be consolidated into a Direct Consolidation Loan without including other eligible loans or even if the only loan they have is an FFEL Consolidation Loan.
For a limited time, all FFEL borrowers, including those with a current FFEL Consolidation Loan, are eligible for consolidation.
Related: Is Navient a Federal Loan?