IS STUDENT LOAN CONSOLIDATION RIGHT FOR YOU?
“A Direct Consolidation Loan allows you to consolidate (combine) multiple federal education loans into one loan. The result is a single monthly payment instead of multiple payments…Carefully consider whether loan consolidation is the best option for you. Loan consolidation can greatly simplify loan repayment by centralizing your loans to one bill and can lower monthly payments by giving you up to 30 years to repay your loans. You might also have access to alternative repayment plans you would not have had before, and you’ll be able to switch your variable interest rate loans to a fixed interest rate.” U.S. Dept of Education website.
Consolidation is often the first step towards eligibility for better repayment programs. You may consolidate your loans directly with the U.S. Dept of Education for FREE! The small fee charged for services provided by Student Loan Freedom, LLC is NOT for consolidation but for our expert guidance, selection, processing, and monitoring of your new and lower repayment program.
Subsidized Student Loans for consolidation:
- Subsidized Federal Stafford Loans
- Direct Subsidized Loans
- Subsidized Federal Consolidation Loans
- Direct Subsidized Consolidation Loans
- Federal Insured Student Loans (FISL)
- Guaranteed Student Loans (GSL)
Unsubsidized Student Loans for consolidation:
- Unsubsidized and Nonsubsidized Federal Stafford Loans
- Direct Unsubsidized Loans, including Direct Unsubsidized Loans (TEACH) (converted from TEACH Grants)
- Unsubsidized Federal Consolidation Loans
- Direct Unsubsidized Consolidation Loans
- Federal PLUS Loans (for parents or for graduate and professional students)
- Direct PLUS Loans (for parents or for graduate and professional students)
- Direct PLUS Consolidation Loans
- Federal Perkins Loans
- National Direct Student Loans (NDSL)
- National Defense Student Loans (NDSL)
- Federal Supplemental Loans for Students (SLS)
- Parent Loans for Undergraduate Students (PLUS)
- Auxiliary Loans to Assist Students (ALAS)
- Health Professions Student Loans (HPSL)
- Health Education Assistance Loans (HEAL)
- Nursing Student Loans (NSL)
- Loans for Disadvantaged Students (LDS)
Some loans are always ineligible for consolidation. While these loans may not be included in a Direct Consolidation Loan, they may be considered in the calculation of the maximum repayment period under the Graduated or Extended Repayment Plan. These include but are not limited to the following:
- Loans made by a state or private lender and not guaranteed by the federal government
- Primary Care Loans
- Law Access Loans
- Medical Assist Loans
- PLATO Loans
Is student loan consolidation right for you?
Here are a few questions to ask before moving ahead (call us for a free consultation (1-800-379-1093) or use the short contact us form to your right.
Are your monthly payments manageable?
If you have trouble meeting your monthly payments, have exhausted your deferment and forbearance options, and/or want to avoid default, a consolidation may help you. Student loan consolidation will give you the chance to lower your student loan payments and get control of your finances.
Do you have too many monthly payments?
If you send payments to more than one lender every month and want the convenience of a single monthly payment, consolidation may be right for you.
What are the interest rates on your loans?
If you have variable interest rates on your Federal education loans, you may want to consolidate. The interest rate for the new loan is fixed for the life of the loan. The rate is based on the weighted average interest rate of the loans being consolidated, rounded to the next nearest higher one-eighth of one percent and cannot exceed 8.25 percent.
How much are you willing to pay over the long term?
Like a home mortgage or a car loan, extending the years of repayment may increase the total amount you have to repay.
How many payments do you have left on your loans?
If you are close to paying off your student loans, it may not be worth the effort to consolidate or extend your payments.