This guide explains in a question-and-answer format the Federal Direct Consolidation Loan Program, which is part of the William D. Ford Federal Direct Loan Program and is designed to help students and parents manage and repay money borrowed for postsecondary education, usually with just one monthly payment. Advantages of a Direct Consolidation Loan are identified, including affordability, flexibility, efficiency, and convenience. Also addressed are eligibility standards for student and parent borrowers, and the situation when one or more education loans is in default. The guide goes on to provide detailed examples of four repayment plans: the standard repayment plan, the extended repayment plan, the graduated repayment plan, and the income-contingent repayment plan. Guidelines and a table to help compare repayment plans are also provided. Two attached charts provide comparative information of loan benefits. (DB)