Compare student loan consolidation programs
Consolidating your student loans can save you a lot, so before
you commit to a particular program it pays off to compare several
student loan consolidation programs to find the one that is best
for you.
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An Overview of Student Loan Debt Consolidation
By Angela Rogers
A student loan debt consolidation loan allows you to combine your
federal student loans into a single loan with one monthly payment.
The repayments of a student loan debt consolidation loan can be
significantly lower than the payment required under the standard
10-year repayment option. Under the Federal Family Education Loan
(FFEL) Program, banks, secondary markets, credit unions, and other
lenders provide the student loan debt consolidation loan. Under
the William D. Ford Federal Direct Loan (Direct Loan) Program, the
federal government provides the student loan debt consolidation
loan.
Most federal education loans are eligible for inclusion in a student
loan debt consolidation loan, including subsidized and unsubsidized
Direct and FFEL Stafford Loans, SLS, Federal Perkins Loans, Federal
Nursing Loans, and Health Education Assistance Loans. However, private
education loans are not eligible for inclusion in a student loan
debt consolidation loan.
To find out which loans can be included in a student loan debt
consolidation loan contact the Direct Loan Origination Center's
Consolidation Department if you’re applying for a direct student
loan debt consolidation loan. Contact a participating FFEL lender
if you’re applying for a FFEL student loan debt consolidation
loan.
It is worth noting that you are still eligible for a student loan
debt consolidation loan after you graduate, leave school, or drop
below half-time enrollment. You can also get a student loan debt
consolidation loan while you're in school. You must, however, be
attending at least half time and have at least one Direct Loan or
FFEL in an ‘in-school period’ which generally means
that you have been continuously enrolled at least half time since
the loan was disbursed. There are a number of conditions that need
to be met for you to qualify for a student loan debt consolidation
loan, especially if you are delinquent or in default and your loan
holder will be able to give you all the necessary information.
If the same holder holds all the FFEL loans you want to consolidate,
you must obtain the student loan debt consolidation loan from that
holder, unless you haven't been able to get a loan with income-sensitive
repayment terms that are acceptable to you. To be eligible for a
William D. Ford direct student loan debt consolidation loan, you
must have either a direct Stafford subsidized or unsubsidized loan
that will be included in the student loan debt consolidation loan
or have at least one Federal Family Education Loan (FFEL) program
Stafford subsidized or unsubsidized loan.
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Angela Rogers is the editor for http://www.debt-helper.info - Your
guide to debt help and debt consolidation.
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