The Program is a direct "Consolidation Loan" where the Borrower must Consolidate or Merge your Federal Student Loans into one loan and the result is some of the first month's payment.
For the months of January through June 2012, the Department of Education Amrika Union will soon offer two options for the Consolidation of certain borrowers, namely:
Traditional Direct Consolidation Loans, and Special Loan Direct Consolidation.
For Long Period, the borrower making payments to a separate, on federal loans will be given more service (You Pay Back Your Loan to the Loan Provider). may be eligible for special loan consolidation company. A Debt consolidation offers borrowers with a straight A special payment terms are different and the benefits of traditional direct consolidation loan. There is also a different application process for specific direct consolidation loan. Such as the following,
Direct Consolidation Loan Special
U.S. Department of Education (Department) began to offer Specialized Consolidation Loans directly to borrowers who qualify in January 2012. This is the chance of short-term consolidation, which ended June 30, 2012, for borrowers with
At least one education loans held by the Ministry (Direct Loans or Federal Family Education Loan [FFEL]'s Department and served by one of the servicers Department), and at least one FFEL loans held by commercial (FFEL loans held by the FFEL lender and the lender is served well by it or by the Service Provider that is contracted by the lender).
Direct Consolidation Loan specifically intended to help borrowers manage their debts by making sure all their federal loans serviced by the same entity, so that one bill and one payment (the borrower to pay back the loan to the loan Servicer). Borrowers will also receive a reduced rate of interest on Special Loan Consolidation directly as an incentive payment.
To find out more about the aspects of taking specific direct loan consolidation you can get information directly from the following pages, "Studentaid.ed.gov"
As for the Traditional Debt Consolidation Loans Direct is a Direct Consolidation allows borrowers to consolidate (Combine) multiple federal student loans into one loan. The result is a single monthly payment instead of several payments. Make sure you carefully consider whether the consolidation loan is the best option for you. While consolidation can simplify loan repayment and lower your monthly payments, can also significantly increase the total cost of paying your loan. Consolidation offers lower monthly payments by giving you up to 30 years to pay back your loan. But, if you increase the length of your repayment period, you will also pay more and pay more in interest than you want. In fact, in some situations, consolidation can double your total interest expense. If you do not need monthly payment relief, you should compare the cost of repaying your unconsolidated loans against the cost of repaying a consolidation loan. You should also consider the impact of losing any borrower benefits offered by the original loan payment plan. Borrowers benefit from your original loan, which may include interest rate discounts, principal rebates, loans or the cancellation of some benefit, can significantly reduce the cost of paying back your loan. You may lose benefits if you consolidate.
Once your loans are combined into a direct consolidation loan, they can not be removed. That's because the consolidation loan has paid off and nothing else. Take time to study the pros and cons of consolidation before you submit your application. You can see the Checklist Tool for Consolidation or visit www.loan consolidation.ed.gov.
