Subscribe

Should You Consolidate Student Loans?

College GraduatesIn order to make it through the years of school, students take on a lot of debt from various loans. Sometimes, these loans come from private lenders with higher interest rates and fewer protection. Most loans, however, are funded through the Federal Government. These loans come with several protections and repayment plans. If these loans are through private lenders, they may become difficult to keep track of unless you consolidate them. In many cases, a Direct Consolidation Loan may help you to lower your monthly payments, give you a longer time to repay the loan, or even give you access to income-driven repayment options. Here is what you need to know about consolidating your student loans.

           

What is a Direct Consolidation Loan?

A Direct Consolidation Loan combines several existing loans into one, resulting in one monthly payment instead of several payments each month. It may be used to consolidate Federal loans, but private ones may be considered in determining monthly payment options. It may also give you access to new types of repayment plans.

 

What types of loans may be consolidated?

            Nearly all Federal loans may be considered for consolidation, including:

  • Subsidized Federal Stafford Loans
  • Unsubsidized Federal Stafford Loans
  • PLUS loans from the Federal Family Education Loan (FFEL) Program
  • Supplemental Loans for Students
  • Federal Perkins Loans
  • Nursing Student Loans
  • Nurse Faculty Loans
  • Health Education Assistance Loans
  • Health Professions Student Loans
  • Loans for Disadvantaged Students
  • Direct Subsidized Loans
  • Direct Unsubsidized Loans
  • Direct PLUS Loans
  • FFEL Consolidation Loans and Direct Consolidation Loans (only under certain conditions)

 

Should I Consolidate my Loans?

If you have loans with different servicers, then consolidation will ensure one monthly payment instead of several. A Direct Consolidation Loan will reduce your monthly payments by giving you longer to repay your loan. You may extend your repayment time up to thirty years. It may also give you access to income-driven repayment options and the Public Service Loan Forgiveness Program. You may also be able to fix any variable interest rate loans to a fixed interest rate. The interest rate on a Federal Direct Consolidation Loan is fixed.

On the reverse side, a Direct Consolidation Loan may not be right if you do not wish to increase the amount of overall interest you will pay. Because the time to repay will be longer, you will pay more overall interest. You will also lose some borrower benefits such as interest rate discounts, principal rebates, or some loan cancellation benefits. If you are already on track with the Public Service Loan Forgiveness program, you will lose credit for any payments you have already made towards the program.

 

What are the Requirements to Consolidate a Loan?

In order to qualify for a Direct Consolidation Loan, you must consolidate at least one Direct Loan or FFEL Program loan. The loan must be in the repayment or grace period, which means that you must have dropped below half time enrollment or have graduated. You may not consolidate an existing consolidation loan unless you are including an additional eligible loan. If a loan is in default, you must make at least three monthly payments before it may be considered for consolidation.

 

Are There Multiple Repayment Options?

No borrower lives in the exact same economic circumstances as another, so repayment options vary. There are multiple plans, including those with fixed payments and income-driven payments. Each one comes with pros and cons. Income-driven plans may be better for those with less employment security. Fixed payment plans generally pay off the loan much more quickly.

How Do I Apply?

The best way to apply is to visit StudentLoans.gov. You may fill out an application online or print and mail in the paperwork. You will need a FAFSA ID in order to login so that you may select a servicer who will contact you and walk you through the process. Continue making payments on your loans before the process is completed to avoid default and ensure a smooth process. After approval, you will have 60 days before the first payment is due.

Student loans can be tricky. For most people entering adulthood, they are difficult to understand. Direct Consolidation Loans are one method to simplify a complex, but important, process. For more information, visit the Department of Education’s information page for Direct Consolidation Loans. Consolidation of your loans may be a great way to ensure that student loans do not damage your credit or your financial future.

 

Section 8 Vouchers Less Likely to be Accepted
 About 300 less, that is the number in Nashville, TN. Since 2010 there has been 300 fewer Section 8 vouchers accepted throughout the Greater Nashville Area. Families are being kicked out of their apartments and housing because the owners have just decided...
HARP Eligibility and Assistance
 If your mortgage is making your financial life more difficult than you expected, you can get assistance through a program called HARP (Home Affordable Refinance Program). HARP eligibility is easy to determine as there are several factors that can affect...
Five Great Resources for Working from Home
 There have been thousands of people watching “Good Morning America” who have sent us messages thanking us for helping them make the money while working from home. For anyone who hasn’t yet taken the leap forward but feel as though you might be ready,...
Positive Thinking Can Change Your Life
Positive Thinking Can Change Your Life Enthusiasm Is Positive Energy “No pessimist ever discovered the secret of the stars, or sailed to an uncharted land, or opened a new doorway for the human spirit.” - Helen Keller Enthusiasm is the sunshine of your mind’s garden....
The Best Self Help Gurus
In the world today, it is easy to come across scammers looking to take advantage of people in their weakest moments. The realm of self-help is no different. In fact, it can be much worse. Self-help scammers apply abstract concepts so that unsuspecting people will fork...
How To Get A Work-From-Home Job and Earn $275 Per Day
How To Get A Work-From-Home Job & Earn $275 Per Day There are many advantages to working from home. There's no expensive and time-consuming commute, for example, and it's also possible to work from home while juggling other responsibilities. However, while many...
Natural Antibiotics and Antivirals
The issues of antibiotics and antibiotic-resistant bacteria have gotten a lot of attention lately. The concern is that bacteria, having been exposed to antibiotics for so long, have developed a resistance to the antibiotics, creating "superbugs." The grim reality is...
Social Security Disability Benefit Application Help
 There are several advantages to applying for Social Security Benefits online. There is no need for an appointment and it will definitely save you time. Visitng your local Social Security Office can be very time consuming and frustrating. Read the...
History of St Patrick’s Day
 St. Patrick’s Day is celebrated annually on March 17, the anniversary of his death in the fifth century. The Irish have observed this day as a religious holiday for over 1,000 years. On St. Patrick’s Day, which falls during the Christian season of Lent,...
Receiving $4000 in Home Rebates
 Are there any home improvements that you have been contemplating lately? Are you struggling to make ends meet already? Learn more about three Programs a that could help you and millions of homeowners qualify for a $4,000 rebate. These Are Very Tough...
Affordable Health Insurance
Is finding affordable health insurance as improbable as encountering a unicorn walking across your back lawn? It doesn't have to be. Here are seven steps you can take to lower your costs.   1. Understand your options to buying affordable health...
How Do I Get FHA Refunds?
Although FHA refunds are for people who have FHA-insured mortgage loans, not everyone is entitled to a refund. Various factors are considered to determine who can receive a refund. FHA refunds are available for those who finance their homes within three...
The Most Common Reasons for Debt
 High debt balances can create significant stress, negatively impact not only your future, but it can also impact your health. It can prevent you from enjoying the quality of life that you otherwise may enjoy without the burden of debt payments. While...
Lifeline Assistance Program
 There is now a program out there that can even help with your cell phone. The special government program called Lifeline Assistance that offers a free phone and minutes to those who qualify. Getting on the list is not very hard, but there are a few things...
Budget Tips for Today’s Family
If you are in charge of creating the family budget, chances are, you’ve had the unfortunate experience of having a brilliant budget plan that isn’t executed well. This happens to many families and couples, and with a little attitude tweaking, you can solicit the help...
How To Get The Best Insurance Deals
In most cases finding the best insurance deals is difficult. Since having insurance is a requirement rather than being optional it is a good idea to shop around for the best insurance deals. It’s difficult to shell out the cash for insurance premiums and...
4 Most Challenging Discussions You Can Have With Family (And How To Have Them)
It's not always easy to practice open and honest communication, especially with your family. Unfortunately, that lack of communication can have serious consequences. If you're having a hard time finding the courage to approach your family about an issue you're...
Natural Healing Options for Arthritis
Arthritis comes in various forms, but it's always painful. The typical medical approach is to take some sort of pain medication (usually non-steroidal anti-inflammatory drugs, or NASDs) that might result in various side effects, such as stomach pain. Thankfully, there...
5 Strategies to Save Money on a Shoestring Budget
 If you are one of the many people who live on a tight budget, you may feel the stress of your situation on a daily basis. Even a seemingly small issue that arises and has reasonable expenses can throw your budget off track. Reducing your costs is a great...
Best Credit Cards for Questionable Credit
Life does not always work out as planned. Sometimes, a gap in employment leads to a few missed payments, and eviction, or a repossessed vehicle. These things happen to most people. In order build credit back up, a credit card may help. Making regular...

Family Picnic

Enter Your Email for Best Results

Due to the overwhelming response, please enter your name and email to ensure the proper search results.

You Are On Your Way!

Family Picnic

Enter Your Name and Email for Best Results

Due to the overwhelming response, enter your email for best results. Look for your free ebooks from New Flex Career!

You Are On Your Way!

Family Picnic

Enter Your Email for Best Results

Due to the overwhelming response, please enter your name and email to ensure the proper search results.

You Are On Your Way!

Family Picnic

Enter Your Email for Best Results

Due to the overwhelming response, please enter your name and email to ensure the proper search results.

You Are On Your Way!

Family Picnic

Enter Your Email to Receive New Assistance Updates

Due to the overwhelming response, please enter your name and email to ensure proper results.

Thank You! You will now receive the latest assistance updates!

Family Picnic

Enter Your Email for Best Results

Due to the overwhelming response, please enter your name and email to ensure the proper search results.

You Are On Your Way!

Pin It on Pinterest

The More You Share. The More We Can Help!

Share these posts & pages with friends!