Consilidating student loans
Those four loan programs account for 80% of the federal loans made for college students.
For many people, a college education is impossible to obtain without borrowing money to pay for it.
The Direct Consolidation loan is a fixed-interest loan with flexible options, based on your ability to repay.
There is no fee to consolidate, though you can only do it once.
If your loan is subsidized, you won’t be responsible for making any payments until after you graduate.
Your interest rate typically should be 3.76% in 2017-2018 school year.
You can simplify the repayment process by applying for a Direct Consolidation Loan, which can best be defined as: one payment to one servicer, once a month.
Though there are two major sources of student loans — federal and private – the federal side dominates the action, both in amount of money available and loan repayment programs.
There were 21 million students enrolled in colleges and universities in the fall of 2016 and eight million of them received federal loans from the William D. The students took in 6.3 billion in loans, or about ,040 per student. Ford Federal Direct Loan Program includes Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans and Direct Consolidation Loans.
PLUS loans, originally called Parent Loans for Undergraduate Students, were created so parents could help fund their children’s educations.
Now, parents may take out Parent PLUS loans and graduate students may use Grad PLUS loans.