Consolidating government subsidized student loans

Through this program, students can replace their multiple monthly expenditures with a single lower monthly payment.The majority of Federal student loans are eligible for consolidation under the Federal Direct Loan Consolidation Program.Understanding all the benefits will help you make a good financial decision.

A subsidized loan is desirable to the borrower because the government makes interest payments while the beneficiary is still in school; a subsidized loan will save money at the expense of the government.

On the contrary, an unsubsidized student loan is less desirable because no government interest payments are made which makes the loan more expensive to the borrower.

Ford Federal Direct Loan Program, and the Federal Perkins Loan Program.

Under these programs, the United States Department of Education acts as the lender for qualified college students looking to finance their education.

Since student loans are such a hot topic, it pays to know more about the different types of loans available to students.

Starting with federal student loans, two different types of federal loans are available: subsidized and unsubsidized loans.

Before you consolidate, consider the following pros and cons: Note: Just remember, you must continue making payments after submitting your application until you receive notice from your servicer that underlying loans have been paid off.

You have the option to select the servicer of your choice (of which, Nelnet is an option) After your new Direct Consolidation Loan is complete, you may still add more eligible loans to your existing consolidation.

If you would like to add other eligible loans, your servicer must receive your Request to Add Loans Form within 180 days from the date your Direct Consolidation Loan is completed (originated).

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