An Overview of Student Loan Debt Consolidation

A student loan debt consolidation loan allows you toIt is worth noting that you are still eligible for a student
combine your federal student loans into a single loanloan debt consolidation loan after you graduate, leave
with one monthly payment. The repayments of aschool, or drop below half-time enrollment. You can
student loan debt consolidation loan can be significantlyalso get a student loan debt consolidation loan while
lower than the payment required under the standardyou're in school. You must, however, be attending at
10-year repayment option. Under the Federal Familyleast half time and have at least one Direct Loan or
Education Loan (FFEL) Program, banks, secondaryFFEL in an 'in-school period' which generally means
markets, credit unions, and other lenders provide thethat you have been continuously enrolled at least half
student loan debt consolidation loan. Under the Williamtime since the loan was disbursed. There are a
D. Ford Federal Direct Loan (Direct Loan) Program, thenumber of conditions that need to be met for you to
federal government provides the student loan debtqualify for a student loan debt consolidation loan,
consolidation loan.especially if you are delinquent or in default and your
Most federal education loans are eligible for inclusion inloan holder will be able to give you all the necessary
a student loan debt consolidation loan, includinginformation.
subsidized and unsubsidized Direct and FFEL StaffordIf the same holder holds all the FFEL loans you want
Loans, SLS, Federal Perkins Loans, Federal Nursingto consolidate, you must obtain the student loan debt
Loans, and Health Education Assistance Loans.consolidation loan from that holder, unless you haven't
However, private education loans are not eligible forbeen able to get a loan with income-sensitive
inclusion in a student loan debt consolidation loan.repayment terms that are acceptable to you. To be
To find out which loans can be included in a studenteligible for a William D. Ford direct student loan debt
loan debt consolidation loan contact the Direct Loanconsolidation loan, you must have either a direct
Origination Center's Consolidation Department if you'reStafford subsidized or unsubsidized loan that will be
applying for a direct student loan debt consolidationincluded in the student loan debt consolidation loan or
loan. Contact a participating FFEL lender if you'rehave at least one Federal Family Education Loan
applying for a FFEL student loan debt consolidation(FFEL) program Stafford subsidized or unsubsidized
loan.loan.