Consolidating student loans increases total repayment dating industry networking events
Under the Direct Loan Consolidation Program, you can consolidate Subsidized and Unsubsidized Stafford Loans, Supplemental Loans for Students (SLSs), Federally Insured Student Loans (FISLs), PLUS Loans, Direct Loans, Perkins Loans, Health Education Assistance Loans (HEALs), and just about any other type of federal student loan.Loans that are not eligible for consolidation include state or private loans that are not federally guaranteed.Download the Taking Out a Student Loan Handout Download the Student Loan Repayment Handout Student loans are loans provided by the federal government, the state government, private lenders, or your school to help you afford the costs of attending college.Frequently, student loans can be repaid after graduation, but that varies by loan type and based upon your enrollment.This works out for many to be a form of instant forgiveness on their loans because otherwise this interest would be due.For example, someone with a loan amount of ,000 and an interest rate of 6.8% would have ,160 of interest forgiven in their first three years from when their Income Based Repayment begins. If your payment is not zero, it is likely you are not completely paying off the monthly payment, and receiving forgiveness on the difference.
There are many benefits to the program, one of which is forgiveness on the first three years of unpaid interest from when you enroll into the Income Based Repayment plan for the subsidized portion of your loan.Each has their benefits, and we here at Student Debt Relief let our clients make the final decision as to which option they think will benefit them the most in the short and long term.The four repayment plans are the Standard Repayment, Graduated Repayment, Income Contingent Repayment, and finally, the Income Based Repayment.If you are married and file jointly, your spouse’s student loan indebtedness can be taken into account that can further lower your payment. You can consolidate all, just some, or even just one of your student loans.
For those with both private AND federal student loans, it’s often very beneficial to do both a private student loan consolidation for their private loans and a federal student loan consolidation for their federal loans. See How Low Your Payment Could Be Now let’s look at the benefits and eligibility requirements for each program.