To qualify for a Federal Loan Consolidation a number of conditions are to be satisfied. This government loan funding does not put stringent restrictions on processing, at the same time ensures that the basic requirements are met with.

Any number of Federal Loan can be consolidated into one loan liability provided the loan opted for consolidation should remain active, must be in the grace period or repayment period. A loan that has delayed repayments is accepted but not the one which is defaulted. Where a loan is put under default category then such a loan does not qualify for consolidation.

Where the loans considered for consolidation is in an in-school status then such a loan does not fall within the ambit of Federal Loan consolidation. The total eligible Federal Loan outstanding to be consolidated should not be anyway less than $25,000.

The kinds of Federal Loan that qualify for consolidation are listed below.
They are as follows:

• Guaranteed Students Loan (GSL)
• Subsidized and Unsubsidized Stafford Loans (SS/US)
• Federal Family Educational Loans Consolidation Loans
• Federal Perkins Loan
• Federal Nursing Loan
• Federal Insured Student Loan
• Federal Family Educational Loan PLUS Loan
• Direct PLUS Loans
• Graduate PLUS Loans
• Health Professional Students Loan
• Direct Consolidation Loan
• Supplementary Loans for Students

Eligibility and all other terms of Federal Loan consolidation is established by the Federal Government for all lenders under the Federal Family Education Loan Consolidation Program.