Yes, you can delay the processing of your Direct Consolidation Loan until closer to the end of your grace period end date if any of the loans you want to consolidate are in a grace period. Normally, when you consolidate your existing loan(s) into a new Direct Consolidation Loan, you will be required to start [...]
Posts under ‘Student Loan Consolidation’
Can I Consolidate a Defaulted Loan?
Generally, Federal education loan(s) in default may be consolidated in a Direct Consolidation Loan if borrowers: * Agree to repay the loan(s) under the Income Contingent Repayment Plan. OR * Make satisfactory repayment arrangements with the current loan holder(s). If, before applying for consolidation, borrowers who want to completely clear the default notation from their [...]
Married couple may no longer obtain a Direct Consolidation Loan as joint borrowers.
Effective July, 1 2006 a married couple may no longer obtain a Direct Consolidation Loan as joint borrowers. Consolidate jointly with your spouse Effective July, 1 2006 a married couple may no longer obtain a Direct Consolidation Loan as joint borrowers. Source: Department of Education
Can I consolidate an existing consolidation loan?
Yes, under three conditions: Borrowers can consolidate existing consolidation loans into a new Direct Consolidation Loan if they include at least one other FFEL or Direct Loan into the new consolidation loan. Borrowers can consolidate a single Federal Consolidation Loan if the loan is in default status or has been submitted to a guaranty agency [...]
Can I consolidate health professions loans?
Yes, With a Direct Consolidation Loan, borrowers can include certain health profession loans sponsored through the U.S. Department of Health and Human Services with other Federal education loans in their Direct Consolidation Loan. Borrowers must include at least one Direct Loan or Federal Family Education Loan (FFEL) Program loan in the Direct Consolidation Loan. Eligible [...]
Consolidate Perkins Loans into a Direct Consolidation Loan
It is possible to consolidate Perkins Loans into a Direct Consolidation Loan if borrowers include at least one Direct Loan or Federal Family Education Loan (FFEL) in their request. Perkins Loans cannot be included in a Direct Consolidation Loan by themselves. Furthermore, all Perkins Loans consolidated into the Direct Loan Program will be included in [...]
About Loan Consolidation
Consolidation loans allow you to combine different types of federal student loans to simplify repayment. Even if you have just one loan, you can also choose to consolidate it. Both the FFEL and Direct Loan Programs offer consolidation loans. There are several advantages to consolidate or rehabilitate your loan as described in the categories below. [...]
FFEL Consolidation Loan Weighted Average Interest Rate
Consolidation loans have fixed interest rates that are based on the weighted average of the interest rates on the loans being consolidated. A lender can provide a new consolidation loan borrower with the lowest statutory weighted average interest rate for loans by using the lower of the weighted average of the interest rates on the [...]
Can I obtain a Direct Consolidation Loan if I don’t have any Direct Loans?
Yes, borrowers without any Direct Loans may be eligible for a Direct Consolidation Loan if they include at least one FFEL Loan and have been unable to obtain a Federal Consolidation Loan with a FFEL consolidation lender or have been unable to obtain a Federal Consolidation Loan with income-sensitive repayment terms acceptable to them or [...]
FFEL and Direct Stafford Loan Consolidate Eligibility
All FFEL and Direct Stafford Loan borrowers are eligible to consolidate after they graduate, leave school, or drop below half-time enrollment. PLUS loans are eligible for consolidation once they are fully disbursed. Borrowers who are delinquent or in default must meet certain requirements before they may consolidate their loans. Contact your loan holder for more [...]