Consolidating student loans from sallie mae
These include deferment, forbearance, cancellation, and affordable repayment rights.
Also, federal consolidation loans generally have lower interest rates.
APPLYING FOR DIRECT LOAN CONSOLIDATION All borrowers must now apply for Direct Loan consolidation using the web site. It is very important to review this sheet and check to make sure all of the loans you wanted to consolidate are included in the new consolidation loan.
(Click espanol to find a Spanish version of the on-line application). Be sure to meet the deadline for responding if you think there are problems with the consolidation or if you have decided you do not want to go forward.
Loans that are not eligible for consolidation include state or private loans that are not federally guaranteed.
Although all of these different loans may be consolidated, you must have at least one outstanding FFEL or Direct Loan to obtain a Direct Consolidation Loan.
The good news is that the Department explains on its web site that if any loan you want to consolidate is still in the grace period, you can delay entering repayment on your new Direct Consolidation Loan until closer to your grace period end date.
You can indicate this when you apply, and the consolidation servicer will wait to process your application until the appropriate time.
The electronic application consists of five steps: 1. If may make this choice on-line or if you are sending in a paper application, you should send directly to the servicer you choose. The Department provides some general information about servicer performance in the on-line data center and quarterly performance reports. There are still many borrowers struggling with joint consolidation loans.
You can consolidate all, just some, or even just one of your student loans.
Consolidating federal student loans may be a good strategy to lower monthly payments or to get out of default, but it is not always a good idea.
This means, for example, that a Perkins Loan on its own cannot be consolidated into a Direct Loan.
You may consolidate with Direct Loans during grace periods, once you have entered repayment, or during periods of deferment or forbearance.These circumstances are: Borrowers cannot consolidate private student loans with the federal consolidation loan programs.