The Direct Consolidation Loan program is offered by the U. Department of Education to federal student loan borrowers.
Department of Education made the landmark decision to allow you to choose your consolidation servicer (of which, Great Lakes is one) under the Direct Consolidation Loan program.
Consider federal consolidation if you: Your new fixed interest rate will be the weighted average of your previous rates, rounded up to the nearest one-eighth of 1%.
You’ll get a new loan term between 10 and 30 years, depending on your balance. A longer term also will result in paying more in interest.
Although the program existed since then, it was not until President Obama’s budget in 2010 switched all new student loan lending over to the Direct Loan program.