Can Incarcerated Individuals Consolidate Their Loans?

Yes. In a note posted to Federal Student Aid's (FSA's) Confined in Adult Correctional or Juvenile Justice Facility webpage, the U.S. Department of Education (ED) announced it will allow incarcerated individuals who are not currently students to consolidate their student loans. The guidance reads:

"Note: This guidance has been revised effective April 16, 2024, to allow individuals who are currently incarcerated but not currently students to consolidate their loans. This change in the interpretation of Section 484(b)(5) of the Higher Education Act of 1965, as amended (HEA), is consistent with how the HEA and implementing regulations define “student,” “individual,” and “borrower,” which we interpret to allow incarcerated individuals, but not incarcerated students, to consolidate their loans. Since the adoption of the U.S. Department of Education (ED)’s prior policy in 1992, ED has increased access to IDR [income-driven repayment] plans to help borrowers manage their loans, and many defaulted borrowers use loan consolidation to gain access to those repayment options. This policy will help incarcerated borrowers manage and repay their loans."