A Federal Consolidation Loan combines multiple federal student loans into one new loan with a single student loan payment.The new loan will have a new interest rate, new terms and conditions.Loans that are not eligible for consolidation include state or private loans that are not federally guaranteed.Although all of these different loans may be consolidated, you must have at least one outstanding FFEL or Direct Loan to obtain a Direct Consolidation Loan.Borrowers who are having difficulty with private student loans, from lenders like Sallie Mae and others, have fewer options.Today we are going to take a look at the programs available to private student loan borrowers.For instance, all our post originally said about Discover was that “Discover encourages struggling borrowers to call its ‘Repayment Assistance Department.'” We were vague because, well, Discover was vague too.But times have changed and the student loan crisis, the media coverage surrounding it, and government intervention have worked to create an environment of improved transparency and increased options for borrowers.
Under the Direct Loan Consolidation Program, you can consolidate Subsidized and Unsubsidized Stafford Loans, Supplemental Loans for Students (SLSs), Federally Insured Student Loans (FISLs), PLUS Loans, Direct Loans, Perkins Loans, Health Education Assistance Loans (HEALs), and just about any other type of federal student loan.
It’s that dreaded time of year for recent graduates: the end of the six-month grace period on student loans.
Whether you owe ,000 or ,000, having a handle on your education debt will help you avoid fees, keep your payments affordable and safeguard your credit rating. Take a deep breath and check out these expert tips.
Extending the repayment period may increase your total finance charge, even though you may have a lower monthly payment.
Be aware of all loan terms and conditions before consolidating your educational loans.