Loan Consolidation

The Higher Education Act (HEA) provides for a loan consolidation program under both the Federal Family Education Loan (FFEL) Programs and the Direct Loan Program. These programs simplify loan repayment by combining several types of federal education loans into one new loan. Benefits may include lower interest rates and an extended repayment time.


An education loan is a form of financial aid that must be repaid, with interest. Eligibility may be based on Cost of Attendance and financial need for the loan. More than 60 percent of U.S. higher education students borrow money to pay for school.

Each loan type comes with certain eligibility requirements and terms that must be met. Federal loans require acceptance into a degree seeking program or certificate program. Students taking pre-requisite coursework prior to admission should contact their financial aid adviser.

Most federal loans require a Free Application for Federal Student Aid (FAFSA) be filed.

Limits are set on how much financial assistance students can receive in the form of federal student loans, frequently determined by the student’s financial need and grade level. Federal law sets the maximum interest rates and fees that lenders may charge for federally guaranteed loans.

All loans are applied to the student's MU account.