It is not uncommon now to hear of people having multiple creditors to pay. And many try to make payments on time and beat due dates. With the cost of education having risen over the years, former students are constantly looking for ways to pay back their educational loans. When one has multiple loans to think about as paying different loans at different times can be, now paying debt can be difficult already but it is more difficult.
To address this problem, a lot of people now opt for direct loan consolidation. This is a fantastic option that allows the borrow to combine (consolidate) one or more of their Federal education loans into one single new loan. A federal direct consolidated loan will pay off all your existing loans like your Perkins Loans, FFELP Loans and Direct Loans and a new loan is created with a single interest rate and repayment period. This means you won't need to remember multiple due dates which make payment easier.
There are also multiple plans available to borrowers so they can choose how to repay their direct consolidation loan. When times are changing, the good thing about these plans is they are tailored to be flexible so the borrow can easily adjust. To opt for a direct consolidation of your debts is also free plus you don't need to have a minimum borrowed amount to qualify for this.
If you only have one loan you might be thinking this is of no use to you, now. But you may want to convert your loan into a direct loan consolidation here to get refinancing benefits and have a much more favorable interest rate. Most federal loans and plus loans can be consolidated.
You have the option of choosing which kind of direct consolidation loan you wish to apply for. A direct unsubsidized consolidation loan combines federal student loans that are no longer eligible for interest subsidies. If any one of the loans to be consolidated is unsubsidized, then you will receive an Unsubsidized Direct Consolidation Loan.
While a direct subsidized consolidation loan combines federal student loans eligible for interest subsidies, the common examples of these are loans such as subsidized FFELP and Direct Loans, and Federal Perkins Loans.
And the third kind is the direct PLUS consolidation loan which combines FFELP PLUS and Direct PLUS loans.
In order for you to qualify for this you just need to have at least one Direct Loan or Federal Family Education Loan that is under these status; repayment, deferment, default, or in grace.
If you are currently experiencing difficulty making payments to your creditors, you have multiple due dates, and you just wish to have the option of better repayment schemes you may want to consider availing of this service now.
A federal direct consolidated loan will pay off all your existing loans like your Perkins Loans, FFELP Loans and Direct Loans and a new loan is created with a single interest rate and repayment period. You may want to convert your loan into a direct loan consolidation to get refinancing benefits and have a much more favorable interest rate. A direct unsubsidized consolidation loan combines federal student loans that are no longer eligible for interest subsidies. If any one of the loans to be consolidated is unsubsidized, then you will receive an Unsubsidized Direct Consolidation Loan.