What should I know before I start the loan consolidation process? Guaranteed Student Loans National Direct Student Loans National Defense Student Loans Parent Loans for Undergraduate Students Auxiliary Loans to Assist Students There is one federal loan that does not qualify for the Direct Consolidation Loan program—the Direct PLUS Loan for parents. This cannot be combined with federal loans taken out by the student to be included in a consolidated loan. Your federal loans are eligible for consolidation after graduation, after you leave school, or once you drop below half-time enrollment. In order to be considered for participation in the federal loan consolidation program, your loans must be in repayment or still be under the six-month grace period. Your Direct Consolidation Loan will ha...