To qualify for Direct Consolidation Loans, borrowers must have at least one Direct Loan or Federal Family Education Loan (FFEL) that is in grace, repayment, deferment, or default status. Loans that are in an in-school status cannot be included in a Direct Consolidation Loan. Borrowers can consolidate most defaulted education loans, if they make satisfactory [...]
Posts Tagged ‘Student Loan Consolidation’
You Should Always Consider the Cost of Student Loan Consolidation
You should keep in mind that although consolidation can simplify loan repayment and lower your monthly payment, it also can significantly increase the total cost of repaying your loans. Consolidation offers lower monthly payments by giving borrowers up to 30 years to repay their loans. So, you’ll make more payments and pay more in interest. [...]
Special Considerations for Consolidation of Federal Loans
Student loan consolidation is combining several loans into one with a new repayment term and interest rate. This is generally offered in connection with federal loans. Here’s how to help identify potential problems related to loan consolidation: Avoid lenders and marketers who use high-pressure sales tactics. Some marketers pitch that “your interest rates may go [...]
Student Loan Consolidation Checklist
The very first step: Take inventory of your student loans. For information on your student loans, review your loan documents, and contact your lender or loan servicer. Monthly Payment Amount If you are not in repayment status yet, estimate your monthly non- consolidated loan payment based on the current interest rate and your loan balance. [...]
What are the differences between FFEL Consolidation vs. Direct Consolidation?
Borrowers are encouraged to check with their existing loan holders or servicers to find out about consolidation options available to them. Some differences between programs may include: Minimum balances or numbers of loans required to apply. Types of loans that can be consolidated. A prior account relationship may be required. Repayment incentive benefits to encourage [...]
About Consolidation Hold
Delays the processing of your Direct Consolidation Loan until closer to the end of your grace period 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 repayment of your new loan [...]
What is student loan consolidation?
The process of combining one or more eligible educational loans into a single new loan. The Direct Loan Program offers a Direct Consolidation Loan for those borrowers who are interested in consolidating their eligible educational loans.