Conslidating student loans
Students with demonstrated financial need are often awarded Direct Subsidized Loans which do not change interest as long as you are in school or in a deferment period.Direct Unsubsidized Loans do not require borrowers to have demonstrated financial need and start to accumulate interest as soon as they are awarded.allows you to consolidate (combine) multiple federal education loans into one loan. Direct PLUS Loans received by parents to help pay for a dependent student’s education cannot be consolidated together with federal student loans that the student received.The result is a single monthly payment instead of multiple payments. Refer to the complete list of federal student loans eligible for consolidation in the application.
This will show up as an inquiry on a credit report which can impact a credit score. Top Private education loans are not eligible for consolidation, but for some Direct Consolidation Loan repayment plans, the total amount of your education loan debt—including any private education loans—determines how long you have to repay your Direct Consolidation Loan. The loans that were consolidated are paid off and no longer exist.Unless the loans you want to consolidate are in a deferment, forbearance, or grace period, it’s important for you to continue making payments on those loans until your consolidation servicer tells you that they have been paid off by your new Direct Consolidation Loan.