Get to know out how federal student loans can be merged! Consolidation of federal student loans does not have a credit requirement, and it provides the advantage of a single loan bill and potentially lower payments. But it’s just for federal loans, and the interest rate won’t be cut.
How to Consolidate Federal Student Loans
Sign in to http://studentloans.gov and click on “Complete application and promissory note for consolidation loans.” “In one session, you’ll need to complete the application, so gather the documents listed in What Do I Need? Section before you start and set aside to fill it out for about 30 minutes.
- Tick the loans you want to merge and the ones you do not want separately
- Select a package for repayment. Based on your loan balance, you can either get a repayment schedule or pick one that links payments to income. If you want an income-driven plan, the next form you can fill out is an Income-Driven Repayment Plan Submission.
- Before you submit the form online, proofread the words Until your servicer agrees restructuring is complete, continue making student loan payments as usual
You need to consider federal consolidation if you;
- want to be eligible for income-based repayment or public service loan forgiveness, you need to consolidate. If you have Federal Family Tuition, Perkins or Parent PLUS loans, this is the case
- you want a single federal loan payment, but you do need it to be substantially lower
- are in trouble concerning the student loans and want to get back on track
- consolidate federal loans, they are paid off by the government and replaced by a direct loan for restructuring. When you graduate, leave school or drop below half-time attendance, you’re normally exempt. It is free to combine your federal loans through the Department of Education; steer clear of firms offering fees to consolidate them for you
When you merge federal loans, the weighted average of your previous terms would be rounded up to the next 1/8 of 1%, will be your current fixed interest rate. So for example, if the average is 6.15%, the new interest rate would be 6.25%.
In addition, you can get a new term for a loan ranging from 10 to 30 years. Your repayment period will usually start within 60 days of the first disbursement of your consolidation loan and will, among other factors, be dependent on your total federal student loan balance.
Share on Social Media