Posts Tagged ‘direct loan’

Student Loan Debt Consolidation – An Overview

In a student loan debt consolidation loan, you can combine your federal student loans into one loan with a single monthly payment. Repayment of a student loan debt consolidation loan may be significantly lower than the payment required under the standard 10-year repayment option. The Federal Family Education Loans (FFEL) Program, banks, secondary markets, credit unions and other lenders provide the student loan debt consolidation loan. The William D. Ford Federal Direct Loan (Direct Loan) Program, the federal government determines the student loan debt consolidation loan.

Most federal education loans are eligible for inclusion in a student loan debt consolidation loan, including subsidized and unsubsidized Direct and FFEL Stafford Loans, SLS, Federal Perkins Loans, Federal Nursing loans & Health Education Assistance Loans. But private education loans are not eligible for inclusion in a student loan debt consolidation loan.

To find out which loans may be eligible for inclusion in a student loan debt consolidation loan, you should contact the Direct loan Origination Center’s Consolidation Department if you are looking for a direct student loan debt consolidation loan. Contact a participating FFEL lender if you are applying for a FFEL student loan debt consolidation loan.

It should be noted that you still have the¬†eligibility¬†for student loan debt consolidation loans after your graduation, leaving school, or drop below half-time enrollment. You can also get a student loan debt consolidation loan when you are at school. However, you must attend at least half time, and have at least one Direct Loan or FFEL in an “in-school period ‘which usually means that you have been continuously registered at least half time since the loan was paid. There are some conditions that must be met for you to qualify for student loan debt consolidation loan, particularly if you are delinquent or in default, your loan holder will be able to give you all the necessary information.

If the same holder holds all the FFEL loans you want to consolidate, you must obtain a student loan debt consolidation loan from that holder, unless you are unable to get a loan with income-sensitive repayment terms acceptable to you. To be eligible for a William D. Ford direct student loan debt consolidation loan, you should have a direct Stafford subsidized or low-interest loan that’ll be included in the debt of student loan consolidation loan or have at least one Federal Family Education Loan (FFEL) programme Stafford subsidised or subsidised loan.

Student Consolidation Loan Programs To The Rescue

Not everyone has the financial means to go to college. This is mainly the purpose of a student loan. It allows people to get a loan in order to pay their tuition taxes. A student loan can come in multiple forms; it can be a federal loan, plus loan or other types. The idea of a student loan is more than welcomed because the lack of money is the only thing that keeps you and your dreams apart. A student loan or more can fill the gap that keeps the student from getting a proper education.

The thing is that one student loan might not be enough for all those years of tuition. More are needed and there is nothing that can stop students from getting them. After you finish school and you have to start paying off the loans you can just get a student consolidation loan. Since the people that have heard of student loans are very few you can imagine how many people have heard of a student consolidation loan. So what is a student consolidation loan? This is the way to consolidate your debts. You can take all of your loans and gather them into one. The advantages of doing such a thing are numerous even though some people say the only thing you can save is time. In the end, time is money (according to our society) so the more time you save the more money you earn.

A student loan can be a good deal but it can also turn out bad. If you are not careful you can end up with more debts than you thought you had. When you go out to get a loan you should first be very well informed on the subject so you won’t fall victim to scams. There are also some things you should look for in a loan so you know you have made the best possible choice.

First of all you should know that there are two main types of student loans: subsidized and unsubsidized. A loan is subsidized if it is a government loan and it is guaranteed by the government.
1. Benefiting from a subsidized loan means that you won’t have to pay any interest for that loan while you attend school. You will also have a grace period (which is usually six months long) after you finish college. During this period you won’t pay interest and you don’t have to start paying off the loan.
2. An unsubsidized loan is basically the opposite. If you have this kind of loan it means you will have to pay the interest even if you are in school (of course another alternative is to let it pile up, which is not very smart).
Some loans might be part subsidized and part unsubsidized so you will have two types of loan in one. This is a good time to get a student consolidation loan. You will turn two loans into one to save money and time and get the benefit of a grace period too.

Another thing you should know about student loans is that not every loan can be consolidated. First you have to see if your student loan or loans are eligible for consolidation and then go out and get a student consolidation loan. All the government loans and federal loans are eligible for a student consolidation loan. Another good thing about government and federal loans is that they can be consolidated through a direct loan consolidation program. “What is direct loan consolidation or how is it different from others?” you might ask. As through other programs, through a direct loan consolidation program you take all your student loans and turn them into one. To be eligible for direct loan consolidation you must have loans (federal loans) summing up to ten thousand dollars minimum. The benefits are that this kind of program might reduce the payment up to fifty percent and it can spread the loan over a longer period of time (ten to thirty years). This means that your monthly payments will be lower and more affordable. It’s very easy to apply for this kind of program. All you have to do is fill out a direct loan consolidation application and submit it. After that, you will find out whether your loans are eligible for consolidation and your application has been approved or not.

One of the last things you have to pay attention to when getting a student loan is the interest rate and the period of time. These two are very close and if you know a little trick you might end up saving some money by using it. The thing is that the interest rate for a student loan is very low (the largest is 8.25%, it can’t be any bigger because of the law). So if you get a loan spread over a long period of time you will have a smaller interest rate, but in time you will see that you haven’t saved any money. If you pay the loan in a shorter period, the interest will be the same, but you will probably end up saving a couple of bucks.

A student loan is a great idea if you do it right. If one is good, more are even better. With the help of the student consolidation loan or the direct loan consolidation (if you have federal loans made) programs you will be the one that wins from the situation. Good luck!

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