Federal School Loan Consolidation Cutting Through The Red Tape

Federal School Loan Consolidation Cutting Through The Red Tape



Federal School Loan Consolidation: Cutting Through the​ Red Tape
If you’ve financed your education with a​ variety of​ student loans and are now facing a​ barrage of​ monthly payments,​ you​ may find that a​ student loan consolidation will work to​ your advantage .​
But if​ your loans are courtesy of​ the​ Federal government,​ you​ may not be surprised to​ learn that there is​ a​ plethora of​ regulations for you​ to​ follow in​ applying for student loan consolidation.
FFEL And Direct Consolidation Loans
The US Federal government offers two school loan consolidation options,​ the​ Federal Family Education Loan Program,​ or​ FFEL,​ and the​ Direct Consolidation Loan program .​
It’s up to​ you​ to​ understand how they differ.
If you​ have existing school loan consolidations which you​ wish to​ combine,​ the​ Direct Consolidation Loan Program must be willing to​ accept them .​
While some FFEL lenders may accept all eligible all for consolidation,​ others lenders may accept only FFEL loans .​
But if​ an​ FFEL lender refuses to​ include your non-FFEL loans in​ a​ school loan consolidation,​ it​ may offer you​ an​ alternative way to​ consolidate them.
Repayment Options
FFEL school loans consolidations are available with a​ variety of​ repayment options .​
They include the​ standard,​ graduated,​ extended,​ and income-sensitive repayment plans,​ and while every FFEL lender offers them,​ the​ details of​ each is​ different .​
the​ income-sensitive option,​ for example,​ factors the​ total student loan debt into the​ amount of​ the​ monthly repayments.
The Direct Consolidation Loan Program,​ on​ the​ other hand,​ has the​ standard,​ extended,​ graduated,​ and income-contingent repayment options .​
the​ income-contingent repayment option is​ based on​ factors including the​ borrower’s adjusted gross income,​ family size,​ and amount of​ school loan debt.
Even those who have defaulted on​ an​ FFEL consolidation loan may be considered for consolidation of​ their default into a​ second consolidation,​ but if​ you​ are in​ this situation you​ may have to​ hunt for a​ lender to​ accommodate you​ .​
the​ Direct Consolidation Loan Program will also permit the​ consolidation of​ defaults,​ and if​ you​ can find a​ lender who will do it,​ you​ will have your eligibility for Federal student loans restored .​
For more info see www.schoolloanshelp.com/Articles/Nursing_School_Loan.php on​ Nursing School Loan.
The Direct Consolidating Loans Program will permit you​ to​ consolidate your loans while you​ are enrolled as​ a​ student,​ and if​ you​ qualify,​ will give you​ a​ six-moth grace period before you​ must begin your monthly loan payments; applying for consolidation while you​ are a​ student may also earn you​ a​ lower interest rate .​
the​ FFEL,​ on​ the​ other hand,​ only allows school loan consolidation when you​ have left school when all your loans have reached their grace or​ active repayment periods.




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