There are numerous consolidation loans out there. There is one good one, offered by the federal government that is just for students and recent graduates. These are called federal consolidation loans.
Apart from the private financial institutions, there is another type of loan consolidation program that debtors with multiple loans can opt for, and this is offered by the U.S. federal government.
The federal consolidation loans that are the easiest to obtain are those loan programs for students, which makes a lot of sense. After all, students and recently graduated students are the ones that need a lot of help when it comes to finances. With little or no source of income, they actually have to pay the whole gamut of student loans, medical bills and credit card debts. The U.S. Department of Education thankfully has loan programs in place that consolidate all federal education loans and allows students to pay for these loans through a single monthly payment.
If you have a multiple student loans, you should know that you actually have the right to consolidate your loans under the Higher Education Act, which created the federal consolidation loans under the Direct Loan Program and the Federal Family Education Loan (FFEL) Programs.
Under these federal consolidation programs, however, only federal loans are eligible to be consolidated. To qualify for these loans, you must also already have at least one federal loan through the Direct Loan or FFEL programs. The loans must either be in their grace period, deferment status, or in default.
You can get more details about federal consolidation from Federal Student Aid, which is part of the United States Department of Education. In addition to FFEL loans, there is another type of loan, which is the CBSL loan. These two loan types encompass a wide variety of loans, such as Federal Parent PLUS Loans, Federal Direct Loans, Federal Direct Grad PLUS Loans, Subsidized Loans For Students(SLS), and Federal Stafford Loans both subsidized and unsubsidized, as well as Health Professions Student Loans, Federal Nursing Loans, Federally Insured Student Loans, and Federal Perkins Loans.
CBSL and FFEL loans can not be consolidated together, and can only be consolidated under their specific loan type. Regardless of this fact, federal consolidation loans can still save you a ton of money, cutting your monthly loan costs by as much as 40%. Terms of repayment on these loans can last as long as thirty years.
If your loans consist of both private and federal student loans, it is definitely the wisest choice to make the federal loans your top priority. Loans that were granted by the United States Department of Education can have effects on your financial state long after you have graduated. With these loans, if you default, the federal government can deduct up to 15% of your gross pay to help recover the debt, as well as taking 100% of your ta returns until the debt is repaid.
Having several federal loans at once need not stress you out. The federal government has actually provided for a solution to this stressful situation through its federal consolidation loans. Keep in mind though, that federal consolidation loans are still debts that need to be paid.
Apart from the private financial institutions, there is another type of loan consolidation program that debtors with multiple loans can opt for, and this is offered by the U.S. federal government.
The federal consolidation loans that are the easiest to obtain are those loan programs for students, which makes a lot of sense. After all, students and recently graduated students are the ones that need a lot of help when it comes to finances. With little or no source of income, they actually have to pay the whole gamut of student loans, medical bills and credit card debts. The U.S. Department of Education thankfully has loan programs in place that consolidate all federal education loans and allows students to pay for these loans through a single monthly payment.
If you have a multiple student loans, you should know that you actually have the right to consolidate your loans under the Higher Education Act, which created the federal consolidation loans under the Direct Loan Program and the Federal Family Education Loan (FFEL) Programs.
Under these federal consolidation programs, however, only federal loans are eligible to be consolidated. To qualify for these loans, you must also already have at least one federal loan through the Direct Loan or FFEL programs. The loans must either be in their grace period, deferment status, or in default.
You can get more details about federal consolidation from Federal Student Aid, which is part of the United States Department of Education. In addition to FFEL loans, there is another type of loan, which is the CBSL loan. These two loan types encompass a wide variety of loans, such as Federal Parent PLUS Loans, Federal Direct Loans, Federal Direct Grad PLUS Loans, Subsidized Loans For Students(SLS), and Federal Stafford Loans both subsidized and unsubsidized, as well as Health Professions Student Loans, Federal Nursing Loans, Federally Insured Student Loans, and Federal Perkins Loans.
CBSL and FFEL loans can not be consolidated together, and can only be consolidated under their specific loan type. Regardless of this fact, federal consolidation loans can still save you a ton of money, cutting your monthly loan costs by as much as 40%. Terms of repayment on these loans can last as long as thirty years.
If your loans consist of both private and federal student loans, it is definitely the wisest choice to make the federal loans your top priority. Loans that were granted by the United States Department of Education can have effects on your financial state long after you have graduated. With these loans, if you default, the federal government can deduct up to 15% of your gross pay to help recover the debt, as well as taking 100% of your ta returns until the debt is repaid.
Having several federal loans at once need not stress you out. The federal government has actually provided for a solution to this stressful situation through its federal consolidation loans. Keep in mind though, that federal consolidation loans are still debts that need to be paid.
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