Program Description
Consolidation Loans are available to most borrowers of Federal education loans and come from one of two sources:- Direct Consolidation Loans are made by the U.S. Department of Education. You repay a Federal Consolidation Loan to the U.S. Department of Education.
- Federal Consolidation Loans are made through the Federal Family Education Loan (FFEL) Program. While FFEL funds come from private lenders, such as banks and credit unions, they are subsidized and supported by the U.S. Department of Education. You repay a FFEL Consolidation Loan to the private lender that made the loan or to its designated agency.
Whether you receive a Direct or FFEL Consolidation Loan depends on which program you choose. In either case the terms of the loan (loan amounts, interest rate, and other benefits) are generally the same.
General Program Requirements
Most Federal student loans are eligible for consolidation, including subsidized and unsubsidized Direct and Federal Family Education (FFEL) Stafford Loans, Direct and FFEL PLUS Loans (parent loans), Federal Perkins Loans, Federal Nursing Loans, and Health Education Assistance Loans. Private educational loans are not eligible.You can get an FFEL Consolidation Loan during your grace period, once you have entered repayment, or during periods of deferment or forbearance. Direct Consolidation Loans are also available when you are still in school. Borrowers who are in default must meet certain requirements before they may consolidate their loans.
Loan Terms
Maximum Loan Amount: noneInterest Rate: weighted average interest rate on the loans being consolidated, rounded to the nearest one-eighth of 1 percent, not to exceed 8.25 percent. Currently, the interest rate is fixed for the life of the loan. To get an estimate of your interest rate, go to the Online Calculator at https://loanconsolidation.ed.gov/loancalc....
Maximum Loan Length: 30 years
Frequency of Payments: monthly or quarterly
Prepayment penalties: none
Fees: none
Your Next Steps
The following information will lead you to the next steps to apply for this benefit.Program Description
Federal Perkins Loans help financially needy undergraduate and graduate students meet the cost of postsecondary education. The award is made by the school based on the availability of funds. A Federal Perkins Loan carries a fixed interest rate and must be repaid beginning after a nine-month grace period following the date when the student is no longer enrolled on at least a half-time basis.Institutional financial aid administrators at participating institutions have substantial flexibility in determining the amount of Perkins loans to award to students who are enrolled or accepted for enrollment. Borrowers who undertake certain public, military, or teaching service employment are eligible to have all or part of their loans canceled.
General Program Requirements
In order to qualify for this benefit program, you must be a student pursuing a postsecondary educational degree or certificate.Loan Terms
Maximum Loan Amounts: Undergraduate - up to $5,500 a year (maximum of $27,500 as an undergraduate)Graduate - up to $8,000 a year (maximum of $60,000, including undergraduate loans)
Amount actually received depends on financial need, amount of other aid, and availability of funds at school
Interest Rate: Fixed at five percent
Maximum Loan Length: Up to 10 years to repay, depending on amount owed
Frequency of Payments: Monthly or quarterly. After you graduate, leave school, or drop below half-time enrollment, you have a nine-month grace period before you begin repayment. Those in the military might have longer.
Prepayment penalties: None
Fees: None
Your Next Steps
The following information will lead you to the next steps to apply for this benefit.Program Description
The National Student Loan Data System (NSLDS) is the U.S. Department of Education's (ED's) central database for student aid. NSLDS receives data from schools, guaranty agencies, the Direct Loan program, and other Department of ED programs. NSLDS Student Access provides a centralized, integrated view of Title IV loans and grants so that recipients of Title IV Aid can access and inquire about their Title IV loans and/or grant data.General Program Requirements
If you are a recipient of loans or grants (Title IV Aid) then your record will be viewable in the National Student Loan Data System.Your Next Steps
The following information will lead you to the next steps to apply for this benefit.Program Description
Direct Stafford Loans, from the William D. Ford Federal Direct Loan (Direct Loan) Program, are low-interest loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school. Eligible students borrow directly from the U.S. Department of Education (the Department) at participating schools.Stafford Loans are available for undergraduate and graduate students and come from Direct Stafford Loans made by the U.S. Department of Education. You will repay a Federal Direct Stafford Loan to the U.S. Department of Education.
Direct Stafford Loans include the following types of loans:
A subsidized loan is awarded on the basis of financial need, as determined by the information you submit on the Free Application for Federal Student Aid (FAFSA). If you are eligible for a subsidized Stafford loan you will not be charged interest while you are in school on an at least half-time basis, during a grace period of up to six months after you are no longer enrolled on at least a "half-time" basis, or during certain defined deferment periods. The Federal government pays (subsidizes) the interest during these periods.
An unsubsidized loan is not awarded on the basis of need. But you still must apply using the FAFSA. For unsubsidized loans, you will be charged interest from the time the loan is disbursed until it is paid off in full. However, you can choose to defer payment of interest while you are in school and during any grace or deferment period. However, if you allow interest to accrue (accumulate) during these periods, it will be capitalized. This means that interest will be added to the principal amount of your loan, and additional interest will be based on that higher amount.
General Program Requirements
To qualify for this program, you must be enrolled in a postsecondary educational program leading to a postsecondary degree or certificate. There are other requirements. For more information, read The Student Guide online at http://studentaid.ed.gov/students/publications/student_guide/index.html.Loan Terms
Maximum Loan Amount: up to $20,500 annually (depending on your grade level, your status as a dependent or independent student, your status as an undergraduate or a graduate student, and your total cost of attendance).Interest Rate: The interest rate is variable (adjusted annually on July 1st) but does not exceed 8.25 percent. You'll be notified any time the variable rate changes. For the current Stafford Loan interest rate, go to http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp?tab=funding.
Maximum Loan Length: 30 years, depending on amount borrowed and repayment plan chosen. There are a number of repayment plans offered through the Direct programs. Read the Repaying Your Student Loan online at http://www.studentaid.ed.gov/students/publications/repaying_loans/index.html for more information about repayment.
Frequency of Payments: monthly or quarterly. After you graduate, leave school, or drop below half-time enrollment, you have a six-month grace period before you begin repayment.
Prepayment Penalties: none
Fees: You'll pay a fee of up to four percent of the loan, deducted proportionately from each loan disbursement. Because of this deduction, you'll receive slightly less than the amount you're borrowing.
