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Borrowers Currently Enrolled in school can no longer Consolidate Their Loans
By Admin on September 20th, 2009
Borrowers Currently Enrolled in school can no longer Consolidate Their Loans
The Higher Education Reconciliation Act of 2005 eliminated the provision that allowed a FFEL or Direct Loan borrower who is enrolled in school on at least a half-time basis to request to enter repayment early on his or her Stafford Loans if the lender approves. Repayment is now defined as not beginning until 6 months and one day after the date the student ceases to carry at least one-half the normal full- time academic workload, as determined by the school. Therefore, a FFEL or Direct Loan borrower who is still enrolled in school at least half-time may no longer request to enter repayment early to apply for a FFEL or Direct Consolidation Loan. To apply for a Direct Loan Consolidation or an FFEL Consolidation the borrower must contact the lender and complete an application. Most lenders provide borrowers with the ability to apply on-line or request an application over the telephone. Once an application is completed and submitted, the lender will request information from the borrowers other lenders or from its own system to determine the amounts outstanding on the borrowers loans. The borrower will then receive notification about the consolidation loan, normal consumer disclosures, the amount owed, and if appropriate, where to make payments. FFEL Consolidation Loan Weighted Average Interest Rate Consolidation loans have fixed interest rates that are based on the weighted average of the interest rates on the loans being consolidated. A lender can provide a new consolidation loan borrower with the lowest statutory weighted average interest rate for loans by using the lower of the weighted average of the interest rates on the loans being consolidated as of July 1 or the date the lender received the borrower’s consolidation loan application. The lender should apply a consistent method of determining when an application is received. Most federal education loans are eligible for consolidation, including subsidized and unsubsidized Direct and FFEL Stafford Loans, SLS, Federal Perkins Loans, Federal Nursing Loans, and Health Education Assistance Loans. Private education loans are not eligible. PLUS Loan borrowers (parent borrowers) also can consolidate their loans. To obtain a complete list of the federal student loans that can be consolidated * contact the Direct Loan Origination Center’s Consolidation Department if youre applying for a Direct Consolidation Loan. You can reach them by calling 1-800-557-7392. TTY users may call 1-800-557-7395. * contact a participating FFEL lender if youre applying for a FFEL Consolidation Loan. If you do not know who your FFEL lender is, please call 1-800-433-3243 for assistance.
So, Consolidation Seems Like the Way to Go
By Admin on September 20th, 2009
So, Consolidation Seems Like the Way to Go
It might be, but although consolidation can simplify loan repayment and might lower your monthly payment, you should carefully consider whether you want to consolidate all your loans. For example, you might lose some discharge (cancellation) benefits if you include a Federal Perkins Loan in a FFEL Consolidation Loan or Direct Consolidation Loan. If thats the case, you might want to consolidate only your FFELs or only your Direct Loans and not your Federal Perkins Loan(s). Also, you wouldnt want to lose any borrower benefits offered under your existing nonconsolidated loans, such as interest rate discounts or principal rebates, which can significantly reduce the cost of repaying your loans. You can have a longer period of time to repay your consolidation loan than you do for the individual student loans youre repaying, but this means youll also pay more interest over time. In fact, consolidation can double total interest expense. If you dont need monthly payment relief, you should compare the cost of repaying your unconsolidated loans against the cost of repaying a consolidation loan. To help you figure the costs, contact your lender or loan servicer. Once made, consolidation loans cant be unmade because the loans that were consolidated have been paid off and no longer exist. So, take the time to study your consolidation options before you apply. For more details on loan consolidation, contact your loan holder or servicer.
Student Consolidation Loan Information Sources - Where to Find Them
By Admin on September 20th, 2009
Student Consolidation Loan Information Sources - Where to Find Them
The Internet has brought a lot of benefits, economical and social, to our world today. From all of those incredible consequences of making the net available for almost everyone in the United Stats, the main one is information. So, if you are a future student looking for info, the Internet is the first place to go. It doesnt matter if you are looking for a school, a master degree or even second-hand books that can help you navigate through the long process of getting your dream job. You can find almost anything on the Internet. But what about consolidation loans? Consolidation loans have helped and are currently helping thousands of students across America. If you have heard about this interesting option, where can you find out about it? Are there any sources where you can find student consolidation loan information in the market? Actually, there is. Federal and Standard Student Consolidation Loan Information A much known source of federal student consolidation loans is the Stafford Loan program. On their website, staffordloan.com, you will find a lot of information regarding federal student loan consolidation. From the most basic questions to even the more complicated ones. Another option is the SLM Corporation, also known as Sallie Mae. This entity is the number one student loan organization in the United States, managing almost USD130 billion, with 9 million borrowers across the nation. With 10,000 employees, it offers help and assistance to any American who wishes to consolidate his/her student loans. You can also make a simple query in the Internet and you will find dozens of organizations full of information and numbers that can help you in your decision. Either a federal or standard student consolidation loan, each one of them has their advantages and disadvantages. So you must be very careful in examining each one of them. Are There Any Sources For Student Consolidation Loan Information? There are two very important places that you should look for. The first one is your college. Ask them about the student consolidation loan programs and how you may apply to them. The college can give you valuable information on the dos and donts of this financial alternative. The second place to look for student consolidation loan information is your fellow students. Ask them about their experience with student consolidation loans. They may orient you more than an online form or a webpage with Frequently Asked Questions. Although a consolidation loan is a great way to ease your payments, you need to be well informed.