An Overview Of Student Loan Debt Consolidation

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.

About the Author: Angela Rogers is the editor for http://www.debt-helper.info – Your guide to debt help and debt consolidation.

Tags:

are there any lenders that do federal student loan consolidation? not private loans?
it seems like there aren’t any lenders that do federal student loan consolidation programs. Are there any out there? not private loans.so far it seems like the dept of ed...
What is a good loan consolidation program for Federal and Private student loans?
I am looking for a good student loan consolidation program that will take on both my Federal and Private student loans from Sallie Mae. If you know of any good...
Can you file bankruptcy on a direct consolidation loan?
The William D ford Federal Direct Loan Program, can you file bankruptcy on something like this?...
Good student loan consolidation lenders?
I am looking to consolidate my student loans with a federal consolidation loan. I know the interest rates are based on federal regulation, but I’m wondering about the other offers/benefits....
Private student loan consolidation?
My fiance currently has student loans through Sallie Mae and they are a big RIP OFF!! Is there a PRIVATE loan consolidation program that anyone knows of? We can’t afford...