Education is getting more and more expensive every year, and it is common for college graduates to leave with a lot of debt along with their degrees.
Most students will need a direct federal loan consolidation because managing multiple loans on a starting salary is hard.
Most of these loan repayment plans are made with your possible salary four to five years after you finish school in mind.
Getting a student loan consolidation is a good idea if you are having trouble paying back and keeping track of your many loans.
There are two main types of student consolidation loans: Direct Loan Consolidations and FFEL Consolidation Loans.
The US Department of Education offers Direct Federal Student Loan Consolidations, but lending agencies, banks, and other places offer FFEL consolidation loans.
Federal Direct Consolidation Loans for Students come in three types:
Subsidized Direct Consolidation Loans
Direct Consolidation Loans Without Government Help
Direct PLUS Loans to Consolidate.
If your student loans fit into one or more of these categories, you can get one loan to pay off all of them.
Federal consolidation can help you get your finances in order by making it easier for you to pay back your loans.
This is because you can combine all of your student loans under any federal loan consolidation plan. So you only have one payment to make each month, and the interest rate on this one payment is also fixed.
The interest rate on your consolidation loan is the average of the interest rates on all your other loans.
It has a fixed interest rate that can't go higher than 8.25 percent. Even if you have already stopped paying on some of your student loans, you can still get them consolidated as long as you meet certain requirements.
If you want to know more about a direct federal loan consolidation for students, you can contact the Direct Loan Origination Center's Consolidation Department.
If you want to get an FFEL loan, the agency that gives you the loan should be able to tell you everything you need to know about it.
