Breathe Easy With Federal Direct Loan Consolidation
One of the most convenient student loan repayment options provided to students is Direct Loan Consolidation. For example, if you have a combination of loans outstanding including FFELP Loans, Direct Loans and Perkins Loans, this loan will repay all these loans and create a fresh, single loan in its place.
The new loan will be offered for a combined single rate of interest and a single period of repayment making it extremely easy and convenient for borrowers to handle their monthly budget. Even if you just have only one student loan running, you can convert that to direct loan consolidation.
Federal Loan Consolidation allows borrowers to experience and enjoy the benefits of refinancing that includes more deferment options, flexible repayment options and better rates of interest. There are many loan types you can choose to consolidate under this loan including FFELP Stafford loans that are subsidized or unsubsidized, Federal Student Loan, PLUS Loans, Federal Perkins Loans, ALAS, HEAL, Federal SLS and Health Professional Student Loans.
Borrowers can apply for the Direct Loan Servicing as soon as they enter the repayment period. Time period for consolidating outstanding loans depends exclusively on your borrowing history and present individual situation.
You will be surprised to find your new rate of interest just lower than what you are paying for all your combined outstanding loans every month. The total rate of interest is taken from all the loans you currently run and want to consolidate and a combined average is worked out. Based on this, a fixed rate of interest is imposed on all direct subsidized and unsubsidized loan consolidations. As you apply for the direct loan consolidation, you can choose from three different kinds of loans namely the direct subsidized consolidation, direct unsubsidized consolidation and the direct PLUS consolidation loan.
