Us government consolidating student loans

05-Nov-2017 10:13

Most students receive loans from a different borrower every year, if not every semester, so it is commonplace to have 8-10 student loan payments due every month when you finally graduate.You can simplify the repayment process by applying for a Direct Consolidation Loan, which can best be defined as: one payment to one servicer, once a month.PLUS loans, originally called Parent Loans for Undergraduate Students, were created so parents could help fund their children’s educations.Now, parents may take out Parent PLUS loans and graduate students may use Grad PLUS loans.Stafford Loans are more common than Perkins Loans, the other type of federal student loans.Money for these loans comes directly from the federal government in a program called the Federal Direct Student Loan Program (FDSLP).Stafford and Perkins loans are federal loans given directly to the student.

There were 21 million students enrolled in colleges and universities in the fall of 2016 and eight million of them received federal loans from the William D. The students took in 6.3 billion in loans, or about ,040 per student. Ford Federal Direct Loan Program includes Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans and Direct Consolidation Loans.

If your loan is subsidized, you won’t be responsible for making any payments until after you graduate.

Your interest rate typically should be 3.76% in 2017-2018 school year.

Those four loan programs account for 80% of the federal loans made for college students.

For many people, a college education is impossible to obtain without borrowing money to pay for it.

You are eligible for a larger loan if you are financially independent.