In-school Consolidation
FFEL Consolidation borrowers may not consolidate until they leave school and all their loans are in grace or in repayment. However, Direct Loan Consolidation is available to borrowers who have loans that have not yet entered grace or repayment. A student with only FFEL loans who is enrolled half time or more is eligible for in-school consolidation through Direct Loan consolidation if attending a Direct Loan school; a student with one or more Direct loans is eligible for in-school consolidation whether or not currently attending a Direct Loan school.
In-school consolidation is strongly recommended because you will retain your six-month grace period if the Direct Consolidation Loan Program receives your loan consolidation application while you are enrolled at least half time. You can get a Direct Consolidation Loan while you're in school if you are attending at least half time and have at least one Direct Loan in an "in-school period." (Generally, your loan is in an in-school period if you have been continuously enrolled at least half time since the loan was disbursed.) You may consolidate more than once if you have a new Direct Loan in an "in-school period" to include in a subsequent Direct Consolidation Loan.