Consolidating direct plus loans
Federal student loan consolidation basics How to consolidate federal student loans Benefits of federal consolidation Drawbacks of federal consolidation Private student loan consolidation (student loan refinancing) When you consolidate federal loans, the government pays them off and replaces them with a direct consolidation loan.You’re generally eligible once you graduate, leave school or drop below half-time enrollment.
Federal Direct Stafford and Direct PLUS Loans, as well as Federal Perkins Loans, are eligible for consolidation, and others can be included.However, under current regulatory legislation, in-school status loans cannot be included in a consolidation loan.For a Direct Consolidation Loan, contact the Loan Origination Center’s Consolidation Department at 1-800-557-7392. Borrowers may also go to the comprehensive Federal Direct Consolidation Loan site.You will be given more information about consolidation loans during required entrance and exit counseling sessions.As a general rule, once made, consolidation loans cannot be reversed because the loans that were consolidated have been paid off and no longer exist.Your repayment term will generally start within 60 days of when your consolidation loan is first disbursed and will be based on your total federal student loan balance, among other factors; click on the link below for more details.
[Back to top] Applying for consolidation takes most borrowers less than 30 minutes, according to the Federal Student Aid website.
That’s why we decided to use this blog post to explain exactly what student loan consolidation is and whether or not it’s the right thing for you. How does student loan consolidation differ from the other types of debt consolidation?
By definition, consolidation means combining many loans into one single loan.
As part of the process, you’ll need to provide details about your existing federal student loans, and choose a federal loan servicer and repayment plan for your new consolidation loan.
You have to complete the application in a single session, so do your research before you start. You can consolidate all your federal loans or just some of them.
If you’re a college student or recent graduate, then you’ve probably thought more about student loans and how to pay them off than you’d like.