Where to Find Consolidation Programs to Help Pay Off Student Loans


Knowing exactly where to start when looking for consolidation programs that help you get your student loans under control is the first step to becoming debt-free with your student loans. There are two major programs the federal government makes available to student borrowers to combine debts and reduce monthly repayments. Plus, new recent enhancements to these federal student loan consolidation programs make them attractive options.

The benefits of consolidation are significant. A single lender and a single monthly payment. Payments made by electronic payments preserve your credit rating by not giving you the possibility of even missing a bill. The new Income Contingent Repayment (ICR) plans offer options that could help you get your loan forgiven after a specified period of timely payments.

Consolidation programs offered by the federal government include:

DIRECT LOANS — Direct consolidation by the US Department of Education. Borrowers make payments directly to the ministry. Most advantageous conditions.

FFEL LOANS — The Federal Family Education Loan Program (FFEL). While FFEL funds are subsidized and supported by the US government, these are actually made by private lenders, such as your bank or credit union. Therefore, your FFEL consolidation is refunded directly to the private lender from which your documents originated, unless that lender resold the note. In this case, you make your payments to the new entity.

Getting a direct or FFEL consolidation loan depends on the option you originally took out to attend college.

In either case, the repayment (equivalent to the total amounts you borrowed, the interest rate on the Notes, and other features not listed here that you have already agreed to) will almost certainly be structured the same.

General requirements:

The following federal college loans are eligible for consolidation:

  • Subsidized and Unsubsidized Stafford Loans for Family Direct and Federal Education (FFEL)
  • Direct loans and FFEL PLUS (aka “parent loans”)
  • Perkins Federal Loans
  • Federal nursing loans, and
  • Loans to support health education.

However, you should keep in mind that private educational loans are not eligible at this time.

A student borrower is free to obtain an FFEL consolidation during one of these three different periods:

1. During your grace period after completing your studies

2. When you are in the repayment phase, or

3. During all qualifying periods where you have benefited from a deferral or forbearance.

Therefore, as you can see, there is always a possibility of getting assembly bill relief.

To apply, you must contact the consolidation department of a participating FFEL lender for an application or more information.

For students still in school, there is the possibility that they may still qualify for direct consolidation loans.

But be aware that if you haven’t repaid your student loan, you must meet a number of very specific requirements before you can consolidate it into a more manageable sum. This is why it is extremely important to avoid payment defaults.

The interest rate you end up paying by consolidating can easily be found with this online calculator at http://www.findhow2.com/free-loan-calculator-for-personal-loans.html

The maximum consolidation period is 30 years. You can make monthly or quarterly payments. And there are no prepayment fees or penalties.

To apply, call 1-800-557-7392. (TTY users phone number for the hearing impaired: 1-800-557-7395)

Or, you can apply for free online at: https://loanconsolidation.ed.gov

The new rules announced for federal student loan consolidation programs now give you some of the best options to get rid of student loan worries and find better terms for repaying student loans.

Accessing these essential consolidation programs should be your first step when trying to free yourself from the loans you took out to attend college. Others have done it and you too.

Source by Steve Johnson

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