When to apply for a federal consolidation loan
Borrowers of a PLUS loan need to wait until the loan is entirely disbursed before applying for a federal consolidation loan. For most PLUS borrowers this means that the best time to begin the consolidation process is early March, as the second disbursement would have been received by Hampshire by early February.

If you currently have a variable interest rate PLUS loan, be aware that your interest rate changes annually on July 1. We are notified of the annual changes by June 1, and we post these changes on this Web site under the What's new in loans section. If the rate is expected to increase on July 1, plan to apply for a consolidation loan prior to June 30. If the rate is expected to decrease on July 1, plan to apply after the rate changes.

If you currently have a fixed rate interest rate PLUS loan borrowed after July 1, 2008, and wish to defer payments while the student is enrolled in school, do NOT consolidate your loan. You may defer the payments while the student is enrolled. Contact your loan servicer for details. The deferment of payments while the student is enrolled in school is not available on consolidation loans. If you want to consolidate your loans, wait until the student has finished his or her undergraduate career.

How to apply
The Direct Loan Program is the only consolidation agency at this time. Visit their website at www.loanconsolidation.ed.gov or call them at 800.557.7392.