Consolidating direct and non direct student loans

29 Jul

Today, the answer to that question is probably yes!

7 out of 10 graduates are now graduating with some form of student loan debt.

To qualify for loan consolidation, the student must: The interest rate under consolidation will be fixed using the weighted average of all interest rates consolidated plus 1/8 percent.

Repayment will vary from 12 to 30 years depending upon the amount outstanding in other, non-consolidated loans.

Consolidation loans taken out before that date had a variable interest rate, determined by the individual FDLP loan origination center (e.g., in the case of a university, that university) or FFELP lender (e.g., a third party bank).

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By definition, consolidation means combining many loans into one single loan.

After consolidating, you have only one interest rate and make only one monthly payment, instead of having multiple rates and payments.

Simplifying your life is a side benefit of consolidation – the main reason people do it is to get a fixed lower interest rate so they can pay their debt down faster.

The Federal Loan Consolidation Program was created in 1986.

In 1998, the United States Congress changed the interest rate to the aforementioned fixed rate weighted mean, effective February 1, 1999.