Important Announcement

A federal court issued an injunction preventing the U.S. Department of Education from implementing the Saving on a Valuable Education (SAVE) Plan and parts of other income-driven repayment (IDR) plans.

Important Updates

Saving on a Valuable Education (SAVE) Plan Recertification Dates Extended

If you're enrolled in the SAVE Plan, there's good news. MOHELA, following guidance from the U.S. Department of Education, has extended your deadline to recertify your income-driven repayment (IDR) plan. No action is needed. Watch for communication on your new recertification date.

For the latest information on the SAVE Plan, visit StudentAid.gov/save.

Income-Driven Repayment (IDR) processing

A federal court issued an injunction changed how ED can implement certain parts of IDR plans. Because of these changes, the U.S. Department of Education has instructed federal student loan servicers to deny IDR applications where "lowest monthly payment" was selected, more than one IDR plan was selected, or an IDR plan was not selected. Visit Studentaid.gov/loan-simulator to review your options and apply for an eligible repayment plan.

Saving On A Valuable Education (SAVE) Plan Administrative Forbearance

In July 2024, a federal court injunction blocked parts of the SAVE Plan. As a result, eligible federal student loans were placed in forbearance with a 0% interest rate. During this forbearance interest had not accrued; therefore, loan balances (including principal and interest) have not increased during this forbearance. You will not have to make payments until the SAVE forbearance ends. In February 2025, a second federal court injunction ended the SAVE 0% interest rate. To comply with this injunction, loan(s) in the SAVE Administrative Forbearance began accruing interest on August 1, 2025.

You can view your interest rate, outstanding interest amount, or make payment toward interest via your online account. For more information, view our FAQs!

An official website of the United States government  

Official websites use .gov

A .gov website belongs to an official government organization in the United States

Secure .gov websites use HTTPS

A lock () or https:// means you've safely connected to the .gov website. Share sensitive information only on official, secure websites.

MOHELA Logo
Official Servicer of Federal Student Aid
Important Announcements Contact Us

Loan Consolidation

A Direct Consolidation Loan allows you to combine multiple federal student loans into one loan with one payment and a single, fixed interest rate. If you decide to consolidate, you can choose your servicer. Good news! MOHELA can be your servicer! The entire process typically takes between four and six weeks from the date your application is received.

Before completing a consolidation application, carefully consider the following information to determine whether loan consolidation is the best option for you.

Advantages

  • One monthly payment

  • Access to repayment plans that are not available to you unless you consolidate

  • Access to Public Service Loan Forgiveness, if your loan types were previously not eligible

Disadvantages

  • Extending the amount of time it takes to repay your loans through consolidation may increase the total interest to be paid.

  • Any outstanding interest on the loans you consolidate will be capitalized (added to the principal balance). This means interest may accrue on a higher principal balance than if you had not consolidated.

  • Consolidating during the six-month grace period may forfeit the remainder of your grace period. You can indicate on the consolidation application if you would prefer to delay the consolidation to coincide with the end of your grace period.

  • The interest rate for a Consolidation Loan is a weighted average based on the loans being consolidated and rounded to the nearest 1/8th percent (0.125%). This may be higher than the interest rate on your loans prior to consolidation.

  • Some active-duty military benefits may no longer apply if you consolidate.

  • Loss of qualifying payments made prior to consolidation towards Public Service Loan Forgiveness and Income-Driven Repayment Plans, and possible loss of other federal student loan benefits.

    Please Note: If you consolidate your loans on or after September 1, 2024, the qualifying payments made on Direct Loans (other loan types will not be considered) included in your consolidation loan will be credited to your consolidation loan using a weighted average of those payments. Borrowers are strongly encouraged to certify all their qualifying employment applicable to the loans before they are consolidated to ensure that the weighted average is correctly applied.

  • Loss of eligibility to defer payment on a Parent PLUS loan when the student is enrolled at least half-time.

  • Potential loss of borrower benefits such as interest rate discounts or principal rebates.

Ways to Apply for Consolidation

If you decide to apply to consolidation your loans, please continue to make payments until you receive notification that the consolidation has been completed.

Please Note: Joint consolidation loan co-borrowers are now able to apply to separate their joint loan obligation into individual Direct Consolidation Loans by completing a Combined Application to Separate a Joint Consolidation Loan and a Direct Consolidation Loan Promissory Note   this link will open in a new window (Application/Promissory Note). For more information, visit https://studentaid.gov/announcements-events/joint-consolidation-loans   this link will open in a new window .

Adding Loans to Your Direct Consolidation Loan

You can request to add an eligible loan(s) to a new Direct Consolidation Loan within 180 days of the consolidation loan being funded (disbursed). Search StudentAid.gov  this link will open in a new window for the "Direct Consolidation Loan Request to Add Loans", complete, and submit to:

MOHELA
C/O Aidvantage
PO BOX 300006
GREENVILLE, TX 75403-3006

Good to Know

Aidvantage manages the Consolidation Loan origination process on behalf of the U.S. Department of Education. After you apply for a Consolidation Loan, or request to add loans to your new Consolidation Loan, Aidvantage will be your point of contact for any questions you may have.

After Aidvantage processes your Consolidation Loan, they will send your new loan to MOHELA for servicing. We will send you notification after this occurs.

MOHELA will not have any information about your Consolidation Loan application status while it is being processed. To contact Aidvantage with questions, call 1-800-722-1300.