The Direct Consolidation Loan program is the right choice if your goal is to simplify the process and keep your options open for the many repayment plans available for federal loans. Your rate is determined by the weighted average of the interest on the loans being consolidated rounded up to the nearest one-eighth of 1%.Please note: All students must complete the Free Application for Federal Student Aid (FAFSA®) to determine eligibility for the following programs. Department of Education pays interest while borrower is in school and during grace and deferment periods.When you consolidate student loans – either federal or private – it’s one payment to one lender, once-a-month. Loan consolidation for student loans was created to make it easier for millions of borrowers to pay off their debt.Both federal and private lenders recognize that lower monthly payments help may be the best option, if you don’t get the job you want immediately after graduating from colleges.Find out more about the choices debt consolidation offers.
This means you no longer have to pay back the money that you borrowed—and your debt is erased. Department of Education’s Federal Student Aid website.Repayment of consolidation loans begins within 60 days of disbursement.Repayment terms can be extended from 10 years up to 30 years, based on the amount consolidated and the repayment option that you choose.Most of them could streamline the repayment process by consolidating their student loans. Get Financial Help Now It simplifies repayment and could save you money.It is quite common for people with student loans to deal with 10-12 lending institutions, which means 10-12 payments and 10-12 due dates each month.