Consolidating federal student loans good idea
In this case, the Department of Education covers the interest on the loan.They do this while you are in school and for six months after you graduate.It isn't unusual to pay hundreds of dollars a month in student loans. You could also ruin your chances of using any federal programs in the future. Now you have to figure out how to pay multiple student loan bills? Student loan consolidation requires certain factors in order to qualify. There are several loans in the Direct Loan Program.If you graduated more than six months ago, your loans are likely in the repayment period. Whether you kept a tally of the totals or not, reality will settle in quickly. First, you must not be enrolled in school full-time. If you stopped going to school, you may still qualify. It just can't be more than half-time in order to be eligible. It is one of the largest student loan programs available.It is when your student loan payments begin unless you made other arrangements.If your loan is in default, you must make arrangements to bring it current.You pay the interest on the loan without help from the Department of Education.You don't have to start paying it until the repayment period, though.
For example, if you fell ill and became hospitalized, you may not be able to pay your loan.Usually this means making 3 timely payments in a row before you can consolidate.If you can't become current, you will need to apply for one of the Loan Forgiveness plans. Yes, you may secure a lower interest rate than some of your loans, but not all. The Department of Education determines your interest rate as follows: They take a weighted average of your current student loan interest rates.Always talk to your servicer before making a choice.Up until this point, we discussed federal student loans.