Consolidating educational loans with personal debt

However, after two years the payment amount increases by 7 percent.It increases by another 7 percent every two years after that.If you have at least Federal Direct Loan, then you can use a Federal Direct Consolidation Loan to consolidate almost all of your federal loans.If you have at least one FFEL Loan, then you can use the FFEL Consolidation Loan to do the same.When you apply for a consolidation loan, all of the eligible debts you want to include are rolled into a single monthly payment.Basically you take out a new federal loan that covers the total cost of your eligible debt.Once you use a federal consolidation loan, you can also move into a federal repayment plan described below.

Thankfully, the federal government provides a range of debt relief solutions that can help you: The information below can help you understand how to consolidate your student loans.Call us at Direct and FFEL are two federal loan programs that provide loans to education borrowers eligible for financial aid. However, it still exists to provide consolidation and repayment plans for FFEL loans that already exist.To use this form of consolidation, you need at least one Federal Direct or FFEL loan to use each consolidation loan respectively.A consolidation loan can also be used to pay off federal student loan debts in default.This brings your loans current, so you can qualify for repayment plans and forgiveness programs.But it isn’t designed to address challenges like monthly payments that are too high. This is the simplest and most straightforward repayment plan.

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