You can also apply for loan consolidation or sign up for an income-driven repayment plan there. Federal loans are managed by one of nine student loan servicers. You can contact FED-AID, the federal student aid helpline, to determine if your loan is managed by any of them. If so, the helpline can connect you to your servicer for more information about your loan.
Some federal loan servicers also issue private loans, however, so make sure to verify which you have when you call. For federal student loans, the top of a student loan bill will have the name of your student loan servicer and the name of your federal student loan program.
Unlike with federal student loans, there is no centralized database with all private student loan information. The Department of Education web site has information about the fees the government charges when you take out a Stafford loan.
There are limits on the amount of Stafford loans you can borrow. Stafford loan limits vary depending on whether you are financially dependent or independent. The higher independent student limits also apply to dependent students whose parents are unable to borrow PLUS loans. The Department of Education web site has information about the fees the government charges when you take out a PLUS loan.
Unless the lender determines that extenuating circumstances exist, you will not pass the credit check if you:. Consolidation is similar to refinancing a loan. You can consolidate all, just some, or even just one of your student loans. Consolidating federal student loans may be a good strategy to lower monthly payments or to get out of default, but it is not always a good idea.
Direct consolidation loans are now the only type of federal student consolidation loan. Under the Direct Loan Consolidation Program, you can consolidate just about any type of federal student loan into a new Direct consolidation loan. Loans that are not eligible for consolidation include state or private loans that are not federally guaranteed. Interest rates for consolidation loans are fixed. The fixed rate is based on the weighted average of the interest rates on the loan at the time of consolidation, rounded up to the nearest one-eighth of a percentage point.
The interest rate must not exceed 8. Consolidation loan borrowers should not be charged origination fees. You do not have to pay a fee or pay someone to help you get a government consolidation loan. Be wary of companies charging a lot of money for a free government program.
The Department generally requires all borrowers to apply for Direct Loan consolidation using the studentaid. Click Espanol to find a Spanish version of the on-line application.
The Department strongly encourages borrowers to apply on-line, but you may also download and print a paper application to submit by regular mail. You can find out more about how to apply for a consolidation loan here. This is the section of this web siteabout consolidating out of default, but you do not have to be in default on your loans to consolidate. With a few exceptions, you only get one chance to consolidate your government loans. You should consider the pros and cons of consolidation before starting the process.
Among other potential down sides, you may lose important rights by consolidating. The Department gives this example: If you have both Direct Loans and other types of federal student loans, and you have been making payments toward public service loan forgiveness on your Direct Loans, you should not consolidate your Direct Loans along with your other loans. Student loans — federal and private — are all part of your financial aid package, which can also include scholarships and endowments.
Your school determines your costs, so that is a solid place to start exploring all assistance options. Interested in a private student loan? At College Ave we make applying easy to understand, and you get an instant decision. Start your application here! Apply Pick the loan you would like to apply for or Find Your Application. Who can apply? Undergraduate Students. Perkins Loan. Undergraduate and Graduate Students. Parents of Dependent Undergraduate and Graduate Students. Federal Student Loan Interest Rates Federal student loan interest rates and fees are set at the start of each academic year and remain fixed for the life of the loan.
Variable vs. Fixed Loan Interest Rates A variable interest rate can fluctuate over the life span of a loan. Federal Student Loan Repayment Plans Every loan comes with terms for how and when you will be required to repay it. Income-Based Repayment With an Income-Based Repayment IBR plan, monthly loan payments are capped based on a percentage of your discretionary income, with remaining debt forgiven after a specified number of years usually 20 to 25 years, depending on the IBR.
Forbearance and Deferment Options Forbearance and deferment are terms that refer to a period during which your federal student loan monthly payments are postponed or reduced due to financial hardship or other circumstances. Discharge in the Event of Loss or Disability Permanent disability can qualify you for student loan cancellation. In-School Payments You have the option to start paying off your student loan while you are still in school.
Grace Period The government offers a grace period, during which you do not need to pay anything on your loans until at least six months after graduation. Refinancing Federal Loans to Private In some cases, borrowers might choose to refinance federal loans to private. Borrow Limits Federal loans have borrowing limits built-in.
Matriculation vs. Non-Matriculation A matriculated student refers to most college students — one who has been accepted to a college or university and is enrolled in classes toward the pursuit of a degree. Types of Private Student Loans What is considered a private student loan? Private Undergraduate Student Loans Private student loans for undergraduate students function similarly to other types of private loans in that a credit and income review will be required to determine your ability to repay the loan.
Private Parent Student Loans Some private lenders offer parent loans, which are made to a parent or guardian who is helping a student pay for school; the student is not legally responsible to repay a parent loan.
Private Graduate Loans Private loans for graduate students work similarly to other types of private student loans; a graduate student might need a cosigner or have a parent or guardian take out the loan for them. Private Student Loan Interest Rates Private loan terms, including interest rates and fees, vary by lender and usually are determined based on your credit history and potentially other factors. Repayment options vary by lender but common plans include: Interest Only — You make interest-only payments for the first two years of the repayment term of your loan.
Interest Plus — You make interst payments, along with a monthly amount you determine for the first two years of the repayment term. Full Principal and Interest — You start repaying your principal plus interest right away. Too many Americans are struggling to pay for basic necessities and to provide for their families.
They should not be forced to choose between paying their student loans and putting food on the table. Toggle navigation U. Student Loans Grants Laws Data.
August 26,
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