Consoldating federal student loans

Department of Education made the landmark decision to allow you to choose your consolidation servicer (of which, Great Lakes is one) under the Direct Consolidation Loan program.

Since you must select a repayment plan on your application, start by determining which plan makes the most sense for your situation.

Even if your rates seem high, t he Department of Education puts a cap on consolidation loan rates at 8.25 percent.

One major advantage of federal consolidation loans is that borrowers don't need a stellar credit score to qualify, they can apply any time (even if their loan is in default) at Loan gov, and they'll always get a fixed interest rate.

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.

Note: Depending on your situation, there may be eligibility requirements for certain plans.

Refer to the consolidation application for more information about repayment plan eligibility. Your information won't be saved if you navigate away from the online application.

In order to consolidate your federal loans, you must be either in your grace period or repayment period.You may be able to consolidate private loans through a private financial institution, but this is not generally recommended.A federal Direct Consolidation Loan has a fixed interest rate based on the average interest of your federal loans rounded up to the nearest one-eighth of 1 percent.Are you tired of managing multiple federal student loan payments with multiple interest rates or multiple servicers? The online application should then only take you about 30 minutes to complete. It's important to gather your application information ahead of time, especially since you're required to complete your application in one session.

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