Student Loans

An Overview of Student Loan Debt Consolidation

A student loan debt consolidation loan allows you to combine your federal student loans into a single loan with one monthly payment. The repayments of a student loan debt consolidation loan can be significantly lower than the payment required under the standard 10-year repayment option. Under the Federal Family Education Loan (FFEL) Program, banks, secondary markets, credit unions, and other lenders provide the student loan debt consolidation loan. Under the William D. Ford Federal Direct Loan (Direct Loan) Program, the federal government provides the student loan debt consolidation loan.

Most federal education loans are eligible for inclusion in a student loan debt consolidation loan, including subsidized and unsubsidized Direct and FFEL Stafford Loans, SLS, Federal Perkins Loans, Federal Nursing Loans, and Health Education Assistance Loans. However, private education loans are not eligible for inclusion in a student loan debt consolidation loan.

To find out which loans can be included in a student loan debt consolidation loan contact the Direct Loan Origination Center's Consolidation Department if you're applying for a direct student loan debt consolidation loan. Contact a participating FFEL lender if you're applying for a FFEL student loan debt consolidation loan.

It is worth noting that you are still eligible for a student loan debt consolidation loan after you graduate, leave school, or drop below half-time enrollment. You can also get a student loan debt consolidation loan while you're in school. You must, however, be attending at least half time and have at least one Direct Loan or FFEL in an 'in-school period' which generally means that you have been continuously enrolled at least half time since the loan was disbursed. There are a number of conditions that need to be met for you to qualify for a student loan debt consolidation loan, especially if you are delinquent or in default and your loan holder will be able to give you all the necessary information.

If the same holder holds all the FFEL loans you want to consolidate, you must obtain the student loan debt consolidation loan from that holder, unless you haven't been able to get a loan with income-sensitive repayment terms that are acceptable to you. To be eligible for a William D. Ford direct student loan debt consolidation loan, you must have either a direct Stafford subsidized or unsubsidized loan that will be included in the student loan debt consolidation loan or have at least one Federal Family Education Loan (FFEL) program Stafford subsidized or unsubsidized loan.

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More Useful Resource and Updates on student loans

Education law changes (The Gainesville Sun)
The potential for savings for student and parent borrowers is dramatic. Thousands of dollars can be saved, according to the Project on Student Debt, an independent, nonprofit organization.

Save By Consolidating Student Loans (Investor's Business Daily via Yahoo! News)
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July 1 Brings Record-Setting Drop in Student Loan Interest Rates (Marketwire via Yahoo! Finance)
Both new and current student loan borrowers of certain federal Stafford student loans saw two interest-rate drops go into effect yesterday that could save them significant amounts of money on these fixed- and variable-rate student loans.

Save By Consolidating Student Loans (Investor's Business Daily via Yahoo! Finance)
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Stafford loan interest rates go down (The Daily Texan)
Federal education loans and grants will become more affordable for students this week. The interest rate for Stafford loans decreased by 0.8 percent from 6.8 percent Tuesday and will decrease during the next four years until it hits 3.4 percent. The decrease is a provision of the College Cost Reduction and Access Act, signed into law by President George Bush in September 2007.

FirstAgain Offers Education Loan Alternative for Borrowers Amid Dwindling Access to Traditional Financing Sources (Business Wire via Yahoo! Finance)
SAN DIEGO----FirstAgain� LLC, an online consumer lender focusing exclusively on individuals with excellent credit, offers a welcome alternative to borrowers who potentially could find themselves unable to access traditional forms of education financing this fall.

FirstAgain Offers Education Loan Alternative for Borrowers Amid Dwindling Access to Traditional Financing Sources (Centre Daily Times)
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