Thinking about simplifying the loan repayment associated with college loans? Then consider utilizing the Federal Direct Loan Program. This program allows you to pay based on your income and offers many more repayment choices than ever before.
This program also gives you added flexibility, allowing you to change your repayment plan at any time. Monthly statements help you track all of your consolidation information.
Regardless of how many federal student loans you're repaying, you may benefit from consolidating them into a single account. Any borrower with one or more FFEL or Direct student loans, including parents with PLUS Loans, can consolidate these loans into a Direct Loan account.
Here are just some of the benefits associated with loan consolidation.
1. Consolidation loans combine favorable repayment terms, convenience, financial flexibility and competitive interest rates. By giving you the option to repay over a longer period of time, consolidation may cut your monthly payments substantially although extending the years of repayment increases the total amount you will
repay.
2. Interest rates for a Direct Consolidation Loan are variable and adjusted each year The interest rate for student borrowers will never be higher than 8.25 percent; for parents with PLUS loans, never higher than 9 percent.
3. For those individuals who do not have a Direct Loan, they are required to check with a Federal Family Education Loan (FFEL) Program lender for information about consolidation programs and about setting up new repayment terms that are sensitive to your income.
You must consolidate at least one loan made under the Direct Loan or FFEL Programs. This is how the government manages the program and accommodates so many participants. Learn more about this program and start taking control of your repayment options today.
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