(MONEY Magazine) – In the November issue we told you that the overloaded Department of Education had stopped accepting applications to consolidate government-backed student loans. Consolidation can help cash-strapped college grads lower their monthly outlays by extending the loan-repayment period, though it may increase total interest payments.

Happily, the DOE (800-433-3243) recently resumed accepting such applications. What's more, private lenders, which had previously been able to consolidate all federally backed college loans except those made directly by the government, are now allowed to merge direct loans too. Two such providers: Citibank (800-934-1900) and USA Group (800-448-3533). Act fast, though, because as it stands, private lenders will be able to consolidate direct loans only through Sept. 30. One other change: Sallie Mae has temporarily stopped consolidating loans. --Kelly Smith