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Are you overwhelmed by your student loans and looking for a great option to help you have one more manageable student loan? Well, a Direct Consolidation Loan may be just what you are looking for. Through this program users are no only able to consoldiate multiple student loans into a single loan, but they may aslo be able to lower their monthly payment as well. Continue reading to see if a Direct Consoldiation Loan is the best option for your current situation.

Eligibility?

In order to be considered for a Direct Consolidation Loan, you will need to have a minimum of at least one Direct Loan or Federal Family Education Loan, also commonly referred to as an FFEL. These loans must be in on of the following statuses; grace, repayment deferment or default status. Currently, if you have loans that show as a status of in-school, you will not be able to participate in a Direct Consolidation Loan.

Through a Direct Consolidation Loans, users who are approved have the ability to lower their monthly payment among other things. You also have the ability to consolidate multiple student loans into a more manageable student loan. This allows you to log in and pay for your loan within one dashboard as opposed to using multiple different student loan processors websites. Keeping track of all those logins and site URLs can be a big hassle, and consolidating solves this issue. Finally, one big thing to note here is that if you do choose to go with a longer student loan repayment term, you will more than likely end up paying more over the term of your loan.

What Loans Qualify?

The following loans qualify for Direct Loan Consolidation. Please note that this list is lengthy but should offer some great options if you are looking to lower your monthly payment or consolidate multiple student loans into one smaller singular student loan.

Subsidized Loans:

  • 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 Loans:

  • 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)

From this program, you can see that there is quite a big advantage when choosing to go with a Direct Consolidation Loan.

How to apply?

In order to apply for you will want to head over to the studentloans.gov website to see what documents you will need to fill out in order to fully apply.

Questions?

If you still have questions or would like to know more information please reach out to us here or you can go back to the Student Loan Repayment Assistance Programs page.

 

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