Consolidating direct and non direct student loans
This will result in an increase in the overall cost of a student’s outstanding education loans.Before pursuing a consolidation loan, students should carefully weigh the pros and cons, and consider the financial impact it will have on their future, as well as their present.”We will then offer three of the best ways to consolidate student loans, including a direct consolidation loan from the federal government, the student loan consolidation and payment reduction program, and information on how to consolidate private student loans.
The best way to consolidate student loans will depend on what type of loans you have and your long-term plan for getting out of debt.
Students are only considered eligible for Federal loan consolidation after they have graduated, left school, or dropped below half-time enrollment.
To qualify for a consolidated loan, students must have at least one Federal loan in grace period or in repayment.
According to Student Loan Hero, “Consolidation doesn’t always result in a lower interest rate, plus lower monthly payments usually means paying the loan over a longer period of time and spending more on interest.” Before deciding to start searching for the best way to consolidate student loans, make sure that you understand the terms and conditions of your current payment program.
The student loan consolidation and payment reduction program was reformed by President Obama in 2010.
Through this program, students can replace their multiple monthly expenditures with a single lower monthly payment.