Posts Tagged ‘federal family education loan’

An Understanding of Student Loan Debt Consolidation

A student loan debt consolidation loan makes it possible for you to join your federal student loans into a single loan with a single month to month payment.

The repayments of a student loan debt consolidation loan might be significantly lower than the payment required under the regular 10-year repayment option.

Under the Federal Family Education Loan (FFEL) Program, banks, secondary markets, credit unions, along with other lenders offer the student loan debt consolidation loan. Under the William D. Ford Federal Direct Loan (Direct Loan) Program, the federal government offers the student loan debt consolidation loan.

Most federal education loans are eligible for inclusion in a student loan debt consolidation loan, which includes subsidized and unsubsidized Direct and FFEL Stafford Loans, SLS, Federal Perkins Loans, Federal Nursing Loans, and Health Education Assistance Loans. Having said that, private education loans aren’t eligible for inclusion in a student loan debt consolidation loan.

To discover which loans might be included in a student loan debt consolidation loan get in touch with the Direct Loan Origination Center’s Consolidation Department if you are applying for a direct student loan debt consolidation loan. Get in touch with a participating FFEL lender if you are applying for a FFEL student loan debt consolidation loan.

It really is worth noting that you are yet eligible for a student loan debt consolidation loan soon after you graduate, depart school, or drop below half-time enrollment. You are able to also get a student loan debt consolidation loan even though you are in school. You need to, nonetheless, be attending at the very least half time and have a minimum of one Direct Loan or FFEL in an ‘in-school period’ which commonly means that you have been continuously enrolled at the very least half time because the loan was disbursed.

You can find numerous conditions that need to be met for you to qualify for a student loan debt consolidation loan, particularly for anyone who is behind or in default and your loan holder might be able to provide you with all the required information.

If the very same holder holds all of the FFEL loans you would like to consolidate, you have to acquire the student loan debt consolidation loan from that holder, unless you haven’t been able to obtain a loan with income-sensitive repayment terms that are acceptable to you.

To be eligible for a William D. Ford direct student loan debt consolidation loan, you must have either a direct Stafford subsidized or unsubsidized loan that can be included within the student loan debt consolidation loan or have at least a single Federal Family Education Loan (FFEL) program Stafford subsidized or unsubsidized loan.

Federal Family Education Loan Program

Students are offered a long-term loan that allows them to continue their studies without paying for their expenses till they complete their school. Such loans are called Federal Family Education Loan Program. After six months of completion of course or withdrawal from the degree program, the repayment begins.        

DigiPen, which participates in the Stafford Loan Program, is the most common loans and mostly meant for undergraduate students. Subsidized loans and unsubsidized loans are the two types of loans, which are offered to students. In the subsidized loans, the government pays the interest while the student is in college. In the unsubsidized loans, the student is responsible for paying all the interest on the loans, during and after college. An origination fee of 3% for both the Stafford loans is charged by the U.S. Department of Education and the loan guarantor. One should be enrolled at least as a half-time student, to receive loan funds. It is possible for a student to receive both types of loans at the same time.

For undergraduate loans The Federal Parent Loan for Undergraduate Students is available. The parents can borrow the entire cost of the education. Any other aid that the student receives will be deducted from the total cost. This loan is not based on the assets of the family. 9% interest is charged. This is liable to change according to the school or the lender. A credit report is essential to acquire this loan.

Bank of America : Stafford , bank of America PLUS, college loan : Stafford, college loan : PLUS, Citibank : Stafford, Citibank : PLUS, Wadhovia Education Finance : Stafford, Wadhovia Education Finance : PLUS are some of the lenders who are in association with the DigiPen.

The student should apply for financial aid and should have a complete file in the Financial Aid Office. A loan entrance counseling session has to be undergone by the student at the end of which the student needs to take a test. On completion of the test positively the office should be given a notice. A promissory note will be mailed after the loan is certified.

Private bank loans are other financial aid options. They are alternative loans. These loans from private banks are very helpful to fulfill the student’s needs completely. The private loans have high interest rates. It is entirely based on credit reports. Many commercial lenders and colleges offer private loans. Bank of America, Key bank, Wadhovia Education Finance and Student Loan Express are some of the lenders with whom DigiPen works.

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