Consolidating direct stafford loans
This makes paying back all of your loans easy and affordable.Student loan consolidation has been picking up steam recently.Your repayment term will generally start within 60 days of when your consolidation loan is first disbursed and will be based on your total federal student loan balance, among other factors; click on the link below for more details.[Back to top] Applying for consolidation takes most borrowers less than 30 minutes, according to the Federal Student Aid website. Some spend more money on college debt than they pay for groceries, utilities, or in some cases, even rent. Many people pay hundreds of dollars each month on college loan repayments.Check the federal student aid website for a list of the types of loans that qualify — over 10 different federal loan types are listed. You want access to Income-Driven Repayment options.Subsidized and unsubsidized Federal Direct loans are eligible for all income-driven repayment plans such as IBR, PAYE, REPAYE, and ICR.
What this does, is it allows you to bundle all of your monthly loan payments into just one payment.As you may or may not know, there are two versions of Stafford Loans: subsidized and unsubsidized.These are funded through the government’s Direct Loan Program and the Federal Family Education Loan (FFEL) Program lenders.Loan consolidation essentially pays off your existing loans by taking out one new loan in their place. While a Direct Consolidation Loan can be a great choice in certain situations, it’s not always the best strategy, nor are all loans eligible. You want to simplify your loans into one monthly payment.Instead of multiple payments throughout the month, you can have a single (often lower) monthly payment. So how do you decide whether Direct Loan Consolidation is right for you? If tracking all your student loan payments is driving you crazy, Direct Loan Consolidation may inject a well-needed dose of sanity into your life (and budget).
At a time when the economy is still in recovery and finding a well-paying job is easier said than done, the results of this debt could be devastating.