Did you just graduate from college and have to pay back several different
student loans? If so, then seriously consider consolidating your student loans
into one consolidation loan. To do this you can apply for a "Direct
Consolidation Loan". A Direct Consolidation loan is provided by the Federal
government. You can roll your smaller student loans into one big student loan
There are many advantages to consolidating your loans which include:
- You only have to worry about one monthly payment instead of several payments
per month. Making sure that you have paid each student loan separately can be
distressing and time consuming. Consolidate these student loans into one student
loan and you will only have to deal with one loan payment each month.
- Lower interest rate. A direct consolidation student loan usually offers
a lower fixed interest rate.
- Grace period - You will often be allowed a grace period in which to
start paying your student loan. This is very beneficial since you will be
starting out in your new career and need time to become acclimated and earn
money. This grace period can be up to six months.
- Flexible payment options. The federal government allows flexibility in
payment schedules that can revolve around your new status in the workplace.
For example, you can apply for an income contingent payment schedule.
What loans can you consolidate into your direct consolidation student loan? The
following student loans are eligible for consolidation:
- PLUS student loans as long as your parents pass a credit check.
- Perkins student loans are eligible as long as they are paired with a
direct loan or a Federal Family Education Loan. A Perkins loan won't be
accepted without one of these student loans.
- Health and Human Services/Health Professions loans are eligible for
consolidation. Health and Human Services/Health Professions loans must be
paired with a direct loan or a Federal Family Education loan to be eligible.
Contact the US Department of Education and/or your Financial Aid office at your
college or university for more information. A Direct Consolidation student loan
will enable you to combine your student loans into one loan. This can save you
frustration allowing you to proceed with your new career with peace of mind.
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