Federal School Loan Consolidation - Cutting Through The Red Tape

If you've financed your education with a variety ofFFEL school loans consolidations are available with a
student loans and are now facing a barrage ofvariety of repayment options. They include the
monthly payments, you may find that a student loanstandard, graduated, extended, and income-sensitive
consolidation will work to your advantage. But if yourrepayment plans, and while every FFEL lender offers
loans are courtesy of the Federal government, youthem, the details of each is different. The
may not be surprised to learn that there is a plethoraincome-sensitive option, for example, factors the
of regulations for you to follow in applying fortotal student loan debt into the amount of the
student loan consolidation.monthly repayments.
FFEL And Direct Consolidation LoansThe Direct Consolidation Loan Program, on the other
The US Federal government offers two school loanhand, has the standard, extended, graduated, and
consolidation options, the Federal Family Educationincome-contingent repayment options. The
Loan Program, or FFEL, and the Direct Consolidationincome-contingent repayment option is based on
Loan program. It's up to you to understand how theyfactors including the borrower's adjusted gross
differ.income, family size, and amount of school loan debt.
If you have existing school loan consolidations whichEven those who have defaulted on an FFEL
you wish to combine, the Direct Consolidation Loanconsolidation loan may be considered for consolidation
Program must be willing to accept them. While someof their default into a second consolidation, but if you
FFEL lenders may accept all eligible all forare in this situation you may have to hunt for a
consolidation, others lenders may accept only FFELlender to accommodate you. The Direct Consolidation
loans. But if an FFEL lender refuses to include yourLoan Program will also permit the consolidation of
non-FFEL loans in a school loan consolidation, it maydefaults, and if you can find a lender who will do it,
offer you an alternative way to consolidate them.you will have your eligibility for Federal student loans
Repayment Optionsrestored.