In-School Loan Consolidation Temporarily Authorized
Among other provisions, the Health Care and Education Reconciliation Act of 2010 (HCERA), signed by President Obama on March 30, 2010, eliminated the FFELP and made temporary changes to the conditions under which an eligible borrower may consolidate loans into a Direct Consolidation Loan. The loan consolidation provision only applies to applications received by the Department of Education (ED) on or after July 1, 2010 and before June 30, 2011.
To qualify for loan consolidation during in-school status, the borrower must:
- hold one or more loans from two or more of the following categories:
- FFELP loans that are held by an eligible lender.
- FFELP loans that have been purchased by ED (PUT Loans).
- Direct Loan Program loans.