Student loan consolidation in 2026

Short answer: For federal loans, use a Direct Consolidation Loan — it's free and you apply on studentaid.gov. It can make FFEL or Perkins loans eligible for PSLF and is one way out of default. Since July 1, 2026, new consolidation loans are generally limited to RAP or the Tiered Standard plan, and Parent PLUS consolidations cannot use RAP, so check before you consolidate. Private refinancing is a different product: refinancing federal loans permanently ends PSLF, RAP and other federal protections.

Last verified November 5, 2026 · PSLFCheck Editorial

When federal consolidation helps

You have FFEL or Perkins loans and want PSLF — they must become Direct Loans first.
You're in default and want a faster exit than rehabilitation — see getting out of default.
You want one servicer and one bill.

When to be careful

Consolidation after July 1, 2026 can lose access to IBR and legacy plans.
Parent PLUS consolidation loans cannot use RAP.
Check how consolidation affects your existing PSLF/IDR count with your servicer before applying.
Applying is free. Anyone charging a fee to consolidate federal loans is not ED.

Private refinancing (private loans only)

Warning: Refinancing federal student loans with a private lender turns them into private loans. You permanently lose PSLF, RAP and other income-driven plans, federal forgiveness, and federal deferment/forbearance. Refinancing is generally only worth considering for loans that are already private. PSLFCheck has no refinance partners and earns nothing from refinancing.

Next: apply for Direct Consolidation on studentaid.gov, then compare plans in the RAP calculator. More: default by state.

Check my forgiveness options →RAP calculator PSLF employer search

FAQ

Does consolidation reset my PSLF count?

Under current ED rules, consolidation can carry over qualifying payments using a weighted average; confirm your count with your servicer before consolidating.

Is federal consolidation free?

Yes. Apply on studentaid.gov at no cost.

Sources

Direct Consolidation Loan — studentaid.gov — accessed November 5, 2026
Public Law 119-21 (One Big Beautiful Bill Act), Sec. 82001 — Congress.gov — accessed November 5, 2026
Top FAQs About Income-Driven Repayment Plans — studentaid.gov — accessed November 5, 2026

Disclaimer: Not affiliated with the U.S. Department of Education or any loan servicer. Educational information, not financial or legal advice. Results are estimates. Confirm with studentaid.gov or your servicer. Published by PSLFCheck Editorial, AK Digital Marketing LLC.