Advice for consoladating school loans

05 Jun

This means, for example, that a Perkins Loan on its own cannot be consolidated into a Direct Loan.You may consolidate with Direct Loans during grace periods, once you have entered repayment, or during periods of deferment or forbearance.Both spouses are jointly liable for the loan and both must request IBR.Problems often arise if the ex-spouses are no longer in contact.APPLYING FOR DIRECT LOAN CONSOLIDATION All borrowers must now apply for Direct Loan consolidation using the web site. It is very important to review this sheet and check to make sure all of the loans you wanted to consolidate are included in the new consolidation loan.(Click espanol to find a Spanish version of the on-line application). Be sure to meet the deadline for responding if you think there are problems with the consolidation or if you have decided you do not want to go forward.Loans that are not eligible for consolidation include state or private loans that are not federally guaranteed.Although all of these different loans may be consolidated, you must have at least one outstanding FFEL or Direct Loan to obtain a Direct Consolidation Loan.

However, the interest rate may be greater than 8.25% if your consolidation application was received on or after July 1, 2013.Another common problem is that partial discharge of a joint consolidation loan under any of the discharge programs (other than death discharge) does not eliminate joint liability for the remaining balance.Further, borrowers with joint FFEL consolidation loans, according to the Department, may not reconsolidate into Direct Loans and therefore are not eligible for public service loan forgiveness. The fixed rate is based on the weighted average of the interest rates on the loans at the time of consolidation, rounded up to the nearest one-eighth of a percentage point.These circumstances are: Borrowers cannot consolidate private student loans with the federal consolidation loan programs.However, if you have private loans, you may want to think about consolidating these loans into a new private consolidation loan.