When you consolidate your federal student loans, you are
actually taking a new loan called a federal direct consolidation loan. This new
loan combines several federal student or parent loans into one larger loan,
which replaces your original federal student loans.
Carefully consider whether loan consolidation is the best
option for you. Loan consolidation can greatly simplify loan repayment by
centralizing your loans to one bill and can lower monthly payments by giving
you up to 30 years to repay your loans. You might also have access to
alternative repayment plans you would not have had before, and you’ll be able
to switch your variable interest rate loans to a fixed interest rate.
If you want to proceed with completing a paper version of
the Federal Direct Consolidation Loan Application and Promissory Note, you will
use the documents below. After downloading, printing, and completing the
documents you need, you will mail your application package to the consolidation
servicer you choose. The servicer will complete the consolidation and then
service your Direct Consolidation Loan.
Remember, though, that while practically all repayment plans
lower the monthly payments, they also add on several thousand dollars in
interest costs by stretching out the life of the loan. If, for example, you
stretch out a standard 10-year student loan to 20 years, you can cut monthly
payments by 34%, but you will end up paying double the amount of interest over
that time, Kantrowitz says.
Graduates can have up to 100 percent of a Perkins loan
forgiven if they enter law enforcement, join the Peace Corps, are deployed with
the military or become a science teacher, among other things. Consolidating a
Perkins loan with another loan could eliminate that option.
A final consideration to make when deciding whether or not
to consolidate: Do your individual loans have extra perks? For instance, some
lenders will reduce your interest rate if you pay on time, and other loans –
particularly PLUS loans – offer flexible repayment options you can't get with a
consolidation loan.
Direct Consolidation Loans are made by the U.S. Department
of Education. You repay a Federal Consolidation Loan to the U.S. Department of
Education. Federal Consolidation Loans are made through the Federal Family
Education Loan (FFEL) Program. No new loans are being made under the FFEL
Program. All new loans, and therefore consolidation of those loans, are made
under the Direct Loan Program.
Federal Consolidation Loans are made through the Federal
Family Education Loan (FFEL) Program. No new loans are being made under the
FFEL Program. All new loans, and therefore consolidation of those loans, are
made under the Direct Loan Program.
American Student Loan Consolidation Corporation is the
nation’s preeminent company specializing in Education Consolidation Loans.
Working with the country’s largest guarantors and lenders, our staff and
management are thoroughly trained to answer your questions regarding Student
Loan Consolidation Loans and to ensure that you obtain the best plan for your
needs.
Student Loan Debt has surpassed 1 TRILLION dollars and the
average college graduate has over $26,000 in student loan debt at
graduation. US Student Loan Services
(USSLS) was created with one goal in mind, to HELP students and parents by
assisting them with identifying what federal programs are available, and
assisting students and parents with preparing the documents for those programs. Our qualified Student Loan Debt Counselors
will evaluate your loans and provide you with a FREE no obligation Federal
Student Loan Informational session, showing you how you may qualify for
repayment assistance from the department of education.
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