Pros And Cons Of Consolidating Health Professions Loans
Certain health professions loans that are sponsored by the Department of Health and Human Services can be consolidated along with other Federal education loans under the Direct Loan Consolidation program. It is however necessary to ensure that as a borrower, you include at least one Federal Family Education Loan (FFEL) or Direct Loan.
Health professions loans that are eligible for direct consolidation include NSL or Nursing Student Loans, LDS or Loans for Disadvantaged Students, HEAL or Health Education Assistance Loans and HPSL or Health Professions Student Loans.
There are many advantages offered by direct loan consolidation for health professions loan borrowers. They can enjoy a longer period of repayment; can just pay a single monthly instalment and lower instalment amount.
It is definitely advantagous for health professions loan borrowers to choose direct consolidation rather than Private Loan Consolidation. If you have defaulted on HEAL your late fee and collection costs will be accommodated in the direct consolidation loan.
HEAL borrowers can also choose from flexible repayment options including the ICR or Income Contingent Repayment Plan. There are various aspects to be considered before applying for direct consolidation of your loans.
Rate of interest for direct loan consolidation is based on weighted average on the loans that are consolidated. The rate is fixed not exceeding 8.25%.
Certain health professions loans are subsidized by the US Department of Health and Human Services. Borrowers will not be eligible for this subsidy if they include this loan in their direct consolidation loan.
Deferment interest accrues for direct consolidation loans that include health professions loans. Though borrowers do not retain benefits of deferment in their health professions loan, they can enjoy deferment benefits offered by the direct loans servicing program.
Weighing the advantages and disadvantages with care, decide on whether you want to include health professions loan in your consolidation plan.
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