The subsidized and unsubsidized Stafford Loans are eligible for a Federal Stafford Loan Consolidation after the student graduates, leaves school, or drops below half-time enrollment.

To be eligible for a Federal Stafford Loan Consolidation, borrowers must have at least one Direct Loan that is in grace, repayment, deferment or default status. Loans that are in an in-school status cannot be included in a Direct Consolidation Loan.  Borrowers can consolidate most defaulted education loans, if they make satisfactory repayment arrangements with the current loan holders or agree to repay their new Direct Consolidation Loan under the Income Contingent Repayment Plan.  Borrowers who have only a Stafford Consolidation Loan cannot consolidate again unless they include an additional loan.

Borrowers who do not have Direct Loans may be eligible for a Direct Consolidation Loan if they include at least one FFEL Loan and have been unable to obtain a Federal Consolidation Loan with a FFEL consolidation lender or have been unable to obtain a Federal Consolidation Loan with income-sensitive repayment terms acceptable to them or intend to apply for loan forgiveness under the Public Service Loan Forgiveness Program.