Perhaps. Many borrowers find that their payments will be lower and easier to manage with consolidation. Unfortunately, there are a lot of other factors that can affect your loan payment, including:
Fortunately, there are many different plans available. Including some that might fit your situation. If you are having trouble making payments, the best option is the Income Based Repayment Plan. This plan tailors the payments to your needs; for example, your payments will be reduced if your income is low. Borrowers with little or no income might even qualify for zero payments.
To get your loan payment reduced you will have to be honest and provide proof that you cannot pay. This might include your tax returns, or documentary evidence that you can qualify for government benefits such as Food Stamps, unemployment insurance or Medicaid.
The best way to get your payments reduced is to shop around and do a lot of research. There are a number of consolidation options out there, including private loans. Most people will be able to reduce their student loan payments with a little work.
Possibly. The U.S. Department of Education offers up to 36 months of deferment for Federal Stafford Loans, Perkins Loans and Direct Federal Stafford Loans. Many people are eligible for deferment, including:
To take advantage of this option, you will have to apply directly to the Department or check with a Student Loan Advisor.
Many private lenders offer forbearance and deferment options that will suspend or delay payments for student loan borrowers. You will have to contact the lender directly and ask what options are available for you.
No. The Department of Education has designed consolidation so that borrowers will retain all their benefits if it is done properly. You will still retain the benefits even if you completely pay off the loan.
You must meet the conditions outlined by the U.S. Department of Education.
These conditions are:
Yes. Anybody can contact the Department of Education directly through its website and apply for any of the federal consolidation programs on there.
It is often easier and faster to work through private companies because navigating the federal bureaucracy can be difficult. Many borrowers turn to private companies because they got confused and frustrated by the Department of Education’s system.
Student Loan Advisors understand the process and know how to get the paperwork processed fast. Many borrowers that apply themselves end up waiting for months just to get an answer from the Department.
Yes. A PLUS is a federal student loan so it can be added to consolidation plans. PLUS loans cover education expenses not covered by regular financial aid, such as housing or textbooks.
Yes, but only if you have at least one Direct Loan or Federal Family Education Loan (FFEL). Perkins Loans are not eligible for federal consolidation programs on their own.
Be careful when you consolidate a Perkins Loan because you might lose your benefits and end up paying more. We have seen a lot of borrowers get into trouble by consolidating a Perkins Loan.
Here are some of the potential problems from Perkins Loan Consolidation you must be aware of:
There are better repayment options for those with Perkins Loans including deference, Teacher Student Loan forgiveness and forbearance.
Student Loan Advisors can show you how to take advantage of these options.
Yes, if the loan was sponsored through the U.S Department of Education and you have at least one other Federal Education Loan. This usually means a Direct Loan or a Federal Family Education Loan, but Perkins and PLUS Loans can also qualify.
The following Health Professions Loans are eligible for consolidation under the current rules:
It is often possible to lower your monthly payment and lengthen your repayment period for Health Professions Loans through consolidation. Another great benefit is that you will have just one payment a month to deal with.
We find that it is usually a good idea for a person struggling with a Health Professions Loan to discuss it with a professional, because there are many options available. Despite the advantages to consolidation, there are some borrowers that would be better off going with other options.
Yes, but you can only consolidate loans for programs or degrees that you have completed. This means a person who is in grad school can consolidate the loans they took out to get their bachelor’s degree.
Any degree you are pursuing now is considered in-school and loans for it cannot be consolidated until after graduation.
Yes, but you must add at least one Federal Family Education Loan or Direct Loan to the mix. This means you can consolidate loans you have taken out for your graduate degree with loans taken out for your bachelor’s degree.
You should get some advice if you attempt this because it can be real tricky.
Yes, despite what many people think you do not have to be making payments to consolidate a loan. As long as you have an FFEL or a Direct Federal you can consolidate.
The grace will end as soon as consolidation is approved, but we have found that the benefits from deferment and lower payments often make up for that.
Absolutely! You can apply for consolidation at any time. The best time to apply for consolidation is usually near the end of the grace period. That way you can take advantage of both.
The Federal Loan Forgiveness Programs currently offer several repayment options.
The plans that are currently available include:
You can switch as many times as you want.
This process can be complicated and confusing. Please call a friendly and professional Student Loan Advisors at (844) 499-LOAN, or fill out this Contact Us form and a Student Loan Advisor will follow up with you shortly to guide you through the process.
After you graduate, leave school, or are attending less than half-time.
Yes, if you are attending school less than half the time or if you have loans that are considered “in-school.”
Note: you will not be able to consolidate loans for classes you are currently taking.
The current requirements include:
Simple – get a free consultation from a Student Loan Advisor. The Advisor will discuss your situation and tell you what your options are.
Usually 60 to 90 days depending on the loan servicer. Unfortunately, there’s a lot of paperwork involved so you will have to stay on top of the process.
You can speed up the process by working with a Student Loan Advisor.
That depends on the amount of the loan, your other student loans and the repayment plan you choose. If you have a lot of debt it can take up to 30 years to repay the loan.
Not at all, anybody can apply directly on their own or with the help of a Student Loan counselors.
Anybody can apply directly through this website operated by the US Department of Education.
We find that many people end up turning to a student loan counselor for help because the process can be tricky and sometimes frustrating.
Yes. It will settle some of your student loans, so those collectors should stop contacting you.
Yes. If the lender agrees to the consolidation and it is approved.
Note: if the loan is in default you will have to agree to an Income-Contingent or Income-Based Repayment plan.
Yes, there are a number of alternatives for low-income individuals including Income-Contingent or Income-Based Repayment plans. Student Loan Counselors or the Department of Education can tell you what they are.
Both www.studentdebtrelief.us and the US Department of Education have lots of great information. You can also speak to a Student Loan Counselor at (844) 499-LOAN.
Consolidation replaces your existing loans with a new loan. Deferment is a temporary pause of your payment that can be achieved by negotiating with lenders.
Deferment will not change how much you owe, your interest rate or the number of payments you have to make. Consolidation can lower your interest rates and reduce the number of payments.
That depends on your situation, if you have several loans consolidation is usually a better deal. If you have just one or two student loans you will usually be better off with deferment.
Forbearance is a federal program that provides a temporary pause in FFEL and Federal Direct Student Loan payments for those who are unable to pay.
Consolidation results in a new federal student loan that replaces a number of existing loans. Consolidation can change your payment amounts and interest rates, while forbearance simply puts the payment off to the future.
Bankruptcy is a legal process that can wipe out your debts. Unfortunately it will not affect student loan debts. Consolidation will not eliminate your debt, but it can make student loan obligations easier to manage by lowering interest rates and giving you just one payment.
No federal law specifically exempts student loans from bankruptcy.
Yes if you have at least one federal direct student loan or FFEL, and the issuers of your private loan agree to the deal.
Unfortunately no, but there are many other alternatives available. You can learn about these options by calling (844) 499-LOAN or visiting this website.
Not at all.
No. You can consolidate any amount of debt that you want. There are limits on some options, but there are many alternatives so anybody with any amount of debt has the option to consolidate.
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You will only have one payment a month to make, which will make your bookkeeping far easier. Furthermore, there will be just one lender to deal with which will also make your life a lot easier. This also means there will be just one number to call when you have a question about your loan.
Another big advantage is that there will be just one interest rate to deal with. So it might be possible to lower the interest rate on all of your student loans. Finally, you may be able to take advantage of the deferment and forgiveness options available through the U.S. Department of Education’s Federal Direct Student Loan Program.