Department of education consolidating loans should freshman dating seniors
Eligible loans include: Federal PLUS Loans for Parents are not eligible for consolidation, as they are the sole responsibility of the parent or guardian who secured the loan.Private lender loans, or alternative loans, are also not eligible for the Federal Direct Loan Consolidation Program.These loans form the backbone of the Federal government’s initiative to make college more accessible to students across the country. Department of Education understands the difficulties many students face when it comes time to repay their outstanding college loans, and as the primary lender for all federal student loan programs offers the Federal Direct Consolidation Loan for qualified students with two or more outstanding federal education loans.While Federally supported loans are the most affordable and student friendly loans on the market, any amount of borrowing can create a financial burden for college students who have yet to reach their full earning potential. A Direct Consolidation Loan allows students to combine two or more outstanding federal loans into a single, more manageable, loan package.Students are only considered eligible for Federal loan consolidation after they have graduated, left school, or dropped below half-time enrollment.To qualify for a consolidated loan, students must have at least one Federal loan in grace period or in repayment.* Before July 1, 2010, Stafford, PLUS, and Consolidation Loans were also made by private lenders under the Federal Family Education Loan Program (FFELP). A borrower may consolidate: For Federal Consolidation Loans, the fixed interest rate is the weighted average of the interest rates in effect on the loans at the time that you consolidate, rounded to the nearest higher 1/8th of one percent.The interest rate may not exceed the maximum rate of 8.25%.
Like all Federal student loans, the Direct Consolidation Loan offers extremely attractive terms for qualified borrowers.Federal Consolidation Loans allow borrowers to combine any number of existing federal educational loans into a single, more manageable loan. Ford Federal Direct Loan Program (Federal Direct Loans).* Most federal educational loans are eligible for consolidation, including subsidized and unsubsidized Federal Family Education Loan Program (FFELP) and Federal Direct Loan Program Stafford and PLUS Loans, SLS, Perkins Loans, FISL, Nursing Student Loans, Health Education Assistance Loans, and Health Professions Student Loans.Effective July 1, 2010, all new federal student loans, including consolidation loans, come directly from the U. Private/alternative loans are not eligible for federal consolidation.Repayment of consolidation loans begins within 60 days of disbursement.Repayment terms can be extended from 10 years up to 30 years, based on the amount consolidated and the repayment option that you choose.This results in reduced monthly repayments and a longer term for the loan.Unlike the other loans, consolidation loans have a fixed interest rate for the life of the loan.Each year, college loans make it possible for hundreds of thousands of students to finance their post-secondary education.By far the most popular, and affordable, student loans are offered by the Federal government through both the William D.The Federal government offers a variety of low interest loans specifically designed to meet the needs of college students struggling to meet the rising costs of a post-secondary education.Their loan programs currently include the Federal Perkins Loan, Federal Direct Subsidized and Unsubsidized Loans for undergraduate students, and Federal Direct PLUS Loans for graduate and professional degree seeking students.