Generally, you are eligible to consolidate after you graduate, leave school or drop below half-time enrollment.
Repayment of a Direct Consolidation Loan can begin 60 days after the loan is disbursed, or sooner. We will let you know when the first payment is due. The repayment term ranges from 10 to 30 years, depending on the amount of your consolidation loan, your other education loan debt, and the repayment plan you select.
A Direct Consolidation Loan has a fixed interest rate for the life of the loan. The fixed rate is based on the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest one-eighth of 1%. However, the rate will not exceed 8.25%.
Call us now for your FREE consultation! One of our Student Loan Advisors will go over your existing loans and based on your situation, qualify you for the best consolidation program that fits your needs. Call a friendly and professional Student Loan Advisor or complete the Contact Us form on this website and a Student Loan Advisor will follow up with you shortly.
You must have at least one Direct Loan or FFEL Program loan that is in a grace period or in repayment. If you want to consolidate a defaulted loan, the Student Loan Servicing Center can help you make satisfactory repayment arrangements on the loan with your current loan servicer before you consolidate, or you must agree to repay your new Direct Consolidation Loan under the Income-Contingent Repayment Plan or the Income-Based Repayment Plan. The Student Loan Servicing Center can qualify you for the correct program and assure your approval through the Department of Education.
If you have variable interest rates on your Federal education loans, you may want to consolidate. The interest rate for a Direct Consolidation Loan is fixed for the life of the Direct Consolidation Loan. The rate is based on the weighted average interest rate of the loans being consolidated, rounded to the next nearest higher one-eighth of one percent and can not exceed 8.25 percent.
In 2007, Congress created the Public Service Loan Forgiveness Program to encourage individuals to enter and continue to work full-time in public service jobs. Under this program, borrowers may qualify for forgiveness of the remaining balance due on their eligible federal student loans after they have made 120 payments on those loans under certain repayment plans while employed full time by certain public service employers. Call today to speak to a Student Loan Advisor to see if you possibly qualify.
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