One key component of the FFEL program is the Consolidation Loan.What this does, is it allows you to bundle all of your monthly loan payments into just one payment.
As part of the process, you’ll need to provide details about your existing federal student loans, and choose a federal loan servicer and repayment plan for your new consolidation loan.
You have to complete the application in a single session, so do your research before you start. You can consolidate all your federal loans or just some of them.
Federal student loan consolidation basics How to consolidate federal student loans Benefits of federal consolidation Drawbacks of federal consolidation Private student loan consolidation (student loan refinancing) When you consolidate federal loans, the government pays them off and replaces them with a direct consolidation loan.
You’re generally eligible once you graduate, leave school or drop below half-time enrollment.
It is possible to receive both types of loans, and many students receive both.
This makes the Stafford Loans the most widely distributed student loan.As you may or may not know, there are two versions of Stafford Loans: subsidized and unsubsidized.These are funded through the government’s Direct Loan Program and the Federal Family Education Loan (FFEL) Program lenders.Your repayment term will generally start within 60 days of when your consolidation loan is first disbursed and will be based on your total federal student loan balance, among other factors; click on the link below for more details.[Back to top] Applying for consolidation takes most borrowers less than 30 minutes, according to the Federal Student Aid website.After 180 days, you will need to apply for a new Direct Consolidation Loan.