Best loan consolidating school loans
Best loan consolidating school loans - records dating back
With just a few exceptions, you get only one chance to consolidate with the government loan programs.
These circumstances are: Borrowers cannot consolidate private student loans with the federal consolidation loan programs.
You may consolidate with Direct Loans during grace periods, once you have entered repayment, or during periods of deferment or forbearance.
Borrowers in default may also consolidate in certain circumstances.
People who are working in the public sector or taking advantage of federal debt relief programs such as income-based repayment or public service forgiveness may not want to refinance, as these programs do not transfer to private refinance loans.
Consolidating student loans via refinancing is best for people whose financial position - in terms of employment, cash flow, and credit - has improved since they graduated from school.
Consolidation was previously available to borrowers while they were still in school. Congress also eliminated joint consolidation for spouses, effective July 1, 2006.
(see box below), You can consolidate during grace periods.
Although all of these different loans may be consolidated, you must have at least one outstanding FFEL or Direct Loan to obtain a Direct Consolidation Loan.
This means, for example, that a Perkins Loan on its own cannot be consolidated into a Direct Loan.
You can indicate this when you apply, and the consolidation servicer will wait to process your application until the appropriate time.
APPLYING FOR DIRECT LOAN CONSOLIDATION All borrowers must now apply for Direct Loan consolidation using the web site. It is very important to review this sheet and check to make sure all of the loans you wanted to consolidate are included in the new consolidation loan.
The Department provides the following contact information if you have questions: If necessary, you can also try calling the general Student Loan Support Center at 1-800-557-7394. Both borrowers had to agree to be jointly and severally liable for repayment.