🏫 College Advising

What is the primary purpose of consolidating multiple federal student loans into a single Direct Consolidation Loan?

A To reduce the total amount of interest paid over the life of the loan.
B To combine multiple loans into one, resulting in a single monthly payment and potentially a new repayment plan.
C To convert unsubsidized loans into subsidized loans, thereby eliminating interest accrual.
D To allow the borrower to transfer their loan debt to their parents.

✓ Correct Answer: Option B

The primary purpose of consolidating federal student loans is to simplify repayment by combining multiple loans into a single new loan with one servicer and one monthly payment. It can also open up eligibility for certain income-driven repayment plans.

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