Both student and parent borrowers can consolidate their education loans. (Students and parents can not combine their loans through consolidation, with only loans from the same borrower can be consolidated. But they can consolidate their loans separately.)
Students married are no longer able to consolidate their loans. This provision was repealed effective July 1, 2006. When the married students consolidated their loans at the same time, each spouse has become liable for the entire amount of the loan, and the loans could not be separated if the couple divorced. To avoid such problems in future, the Congress decided to repeal this provision in the context of Higher Education Reconciliation Act of 2005.
The students can only consolidate their education loans during the grace period or after the repayment of loans entering. (Loans that are in default, but with satisfactory repayment terms can also be consolidated.) Students can no longer consolidate while they are still in school. (The early redemption loophole state and the ability of borrowers to consolidate direct loans during the period at school was repealed as part of the Higher Education Reconciliation Act of 2005, effective July 1, 2006.)
Parents, however, can consolidate PLUS loans at any time.
