When you are exploring ways to pay for college, career, or technical schools, you may consider taking out a student loan—money you borrow to help you cover your education expenses and that you must pay back with interest.
Student loans originate from the federal government (called “federal student loans”) or from private sources, such as a bank, credit union, state agency, or school.
“Students can contact our office if they have any questions about the company they are dealing with or the information they are asked to provide.” The US Department of Education offers many tips to individuals with outstanding student loans to help them determine whether loan consolidation is right for them.
From there, BBB offers some additional tips to consumers before seeking student loan consolidation assistance: According to the US Department of Education, it is important that people seeking to consolidate their loans continue to make payments, if required, to the holders or servicers of the loans they want to consolidate until their consolidation servicer informs them that the underlying loans have been paid off.
If you need to borrow money to pay for college or career school, start with the more affordable federal student loan: Types of Federal Student Loan Programs - The William D.In the United States, the Federal Direct Student Loan Program (FDLP) includes consolidation loans that allow students to consolidate Stafford Loans, PLUS Loans, and Federal Perkins Loans into one single debt.This results in reduced monthly repayments and a longer term for the loan.Unlike the other loans, consolidation loans have a fixed interest rate for the life of the loan.Consolidation loans have longer terms than other loans. Although the monthly repayments are lower, the total amount paid over the term of the loan is higher than would be paid with other loans.• Extended Repayment Plan To be eligible, your Direct Loan balance must be greater than ,000 and you will have up to 25 years to repay your loans.