|
Direct
Federal Student Loan
Consolidation
Direct Federal student loan is funded by the Federal government to help many students finance their college education. This loan includes includes Stafford loan, PLUS loan, Direct loan, Heal loans and all FFELP loans.These loans are used to pay for education tuition and other related expenses.You can not apply for a private loan and a federal loan at the same time. And to qualify for this type you should be out of college and not in default of the terms of your loan. There are two types of government debt consolidation loans, one type Federal Family Education Lending Program (FFELP) is funded by the private lenders like banks but guaranteed by the Federal government. The other one FDSLP provides unsubsidized or subsidized borrowing to students and their parents. Most students tend to apply for both types of loans to help with their costs of education. Benefits of direct federal student loan consolidation: Helps to reduce the monthly payments. The term of repayment for the loan can be extended to a maximum of 30 years. A lower rate of interest is charged in comparison with private student loans. You have only one loan to deal with hence making life easier and manageable and helps to eliminate late fee charges. No credit check is carried when applying for consolidation of your direct federal student loan. When applying for this loan there are no extra fees or expenses charged. The above benefits will improve your credit score. To consolidate your student debt through direct federal student loan is always a win win situation. |
|
