Consolidating direct and non direct student loans Young chatcam

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So, for instance: If the average comes to 6.15%, your new interest rate will be 6.25%.

Additionally, you’ll get a new loan term ranging from 10 to 30 years.

You can consolidate all, just some, or even just one of your student loans.

Consolidating federal student loans may be a good strategy to lower monthly payments or to get out of default, but it is not always a good idea.

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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.As you weigh the pros and cons, keep in mind that timing is critical.With just a few exceptions, you get only one chance to consolidate with the government loan programs.Previously, almost all higher-education loans provided or guaranteed by the U. government fell into two categories: direct loans or indirect loans.Indirect loans, often referred to as Federal Family Education Loans or FFEL, referred to privately provided loans by qualified institutions that were financially guaranteed by the federal government. Ford Federal Direct Loan Program, are actually made by the U. Department of Education, and the government serves as creditor and collector on the account.Refinancing debt to consolidate multiple loans into a single one is a standard of debt management.Sometimes it’s to get access to a more favorable interest rate.The short answer is that one loan program still exists (Federal Direct Loans) and one was ended by the Health Care and Education Reconciliation Act of 2010.As a result of that act, no new FFEL Program loans were issued, beginning July 1, 2010.Consolidating your federal loans through the Department of Education is free; steer clear of companies that charge fees to consolidate them for you.When you consolidate federal loans, your new fixed interest rate will be the weighted average of your previous rates, rounded up to the next ⅛ of 1%.

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