This booklet describes the Direct Consolidation Loan program students can use to combine one or more student loans into a new loan. Things to consider before seeking a consolidation loan are outlined. Direct consolidation loans offer a number of advantages; they are free, result in one lender and one monthly payment, and offer flexible repayment options with the possibility of a lower interest rate. Eligibility requirements are described, and a list of eligible loan types and those that are not eligible is provided. (SLD)