Consolidating my sallie mae loans
Consolidating my sallie mae loans - chris edmonton dating motor
Federal student loan consolidation basics How to consolidate federal student loans Benefits of federal consolidation Drawbacks of federal consolidation Private student loan consolidation (student loan refinancing) When you consolidate federal loans, the government pays them off and replaces them with a direct consolidation loan.You’re generally eligible once you graduate, leave school or drop below half-time enrollment.
Additionally, you’ll get a new loan term ranging from 10 to 30 years.When you’re ready, follow these five steps to apply: 1. You’ll find the application by clicking on “Complete a Consolidation Loan Application and Promissory Note” under the repayment and consolidation tab. If you’re a parent with PLUS loans and you also have other federal student loans, you may want to consolidate your PLUS loans in a separate consolidation loan; consolidating them with your other federal loans will make that consolidation loan ineligible for all income-driven repayment plans except income-contingent repayment. Federal loan servicers are private companies that manage federal loans for the Department of Education.If you have Perkins loans, think twice before consolidating them; you’ll lose access to Perkins loan cancellation if you do. You can choose one of four servicers for your new direct consolidation loan: Fed Loan Servicing, Great Lakes Educational Loan Services Inc., Navient and Nelnet.If you have a parent PLUS loan and other types of federal loans, consider consolidating the other federal loans and the PLUS loans separately.If you consolidate them together, your consolidation loan will be ineligible for income-based repayment, Pay As You Earn and Revised Pay As You Earn, because parent PLUS loans are ineligible for those plans.If your loans are already with one of those servicers, you can stay or choose a new one. Pick a repayment plan for your new consolidation loan.
On the standard repayment plan for direct consolidation loans, you’ll make equal monthly payments for 10 to 30 years, depending on your total federal student loan balance.While this will lower your monthly payments, you’ll end up paying more in interest throughout the life of your loan.Secondly, the interest rate on your consolidation loan may be slightly higher, because it will be the weighted average of your previous rates rounded up to the nearest ⅛ of 1%.Your repayment term will generally start within 60 days of when your consolidation loan is first disbursed and will be based on your total federal student loan balance, among other factors; click on the link below for more details.[Back to top] Applying for consolidation takes most borrowers less than 30 minutes, according to the Federal Student Aid website.Alternatively, there are six other repayment plans to choose from, including four income-driven plans.