Student direct loans consolidation is a way designed to help you as a student to repay your education loans. They handle all your loans whether old or new. I’m sure lots of you fall into deep financial debt and have problems taking care of your loans. That’s the same for your financial problems in making your monthly payments.
The remedy for this trouble is called student Direct Consolidation Loans. All your outstanding student loans are combined into one loan with simply one monthly payment. This new loan has a lower interest rate, lower month-to-month repayments and lots of easy payment choices.
Student loan consolidation offers different benefits. Also the rate of interest is below all your individual loans and you also benefit from lower monthly payments. The interest rates are locked, as a result you are protected from your rising standard of living costs. The loans have flexible payment options and also offer no charges, fees or penalties. Additionally, there are no credit checks and do not need guarantors.
Your regular monthly payments might be reduced by around 54%. You typically have 10 years to settle your ordinary loans. Most important you can you can increase your payment period to up to 30 years in a student loan consolidation.
You will certainly have to be qualified to obtain the student direct loan consolidation. As a standard, you will be required to start payment 6 months after finishing from your studies. Depending on your status, you might have to begin payments right away. All you need to do is one simple payments that will be split up to all the financial institutions.
Which Loans Are Qualified?
There are likewise certain loans that can be combined under the Direct Consolidation Loan. The below are taken from the Federal Student Aid:
- Federal Subsidized and Unsubsidized Stafford Loans
- Direct Subsidized and Unsubsidized Loans
- Direct PLUS Loans
- Federal Family Education Loan (FFEL) Program
- Federal Perkin Loans
- Federal Supplemental Loans for Students
- Education and Learning Aid Loans
- Loans for Disadvantaged Students
- Federal Nursing Loans
You can get these loans from any kind of bank or financial institution that’s part of the Federal Family Education Loan Program. You should discuss the student Direct Consolidation Loan terms and conditions with your loan provider. Also the interest rates provided are generally the same from all the financial institutions. Some loan providers offer even more attractive interest rates if your payments are on time. You can choose to have the payments directly debited from your checking account so your loan provider can offer you a discounted rate.
The entire application process of student Direct Consolidation Loan typically takes 30-45 days and it’s the most effective way to handle your financial debt after graduation. All your loans will turn into one loan with just one payment on a month to month basis.
You can apply for the loan through StudentLoans.gov and they offer both an electronic and a paper application. All the information is available on their website to complete the online loan application. You can also download and print the application and submit it by mail.