Can Loan Consolidators Help
Federal Student Loans?
If it is a student loan, it will have to be consolidated separately than others. Irrespective of the loan type, you can get to consolidate the loan but there are some eligibility criteria which you will be required to fulfill. Still, it won’t be possible for you to consolidate your private student loans and the federal student loans as one.
The private student loans are to be consolidated separately like those of the simple consolidation process. As for the federal student loans the process is different. For this, you may not even be required to get the help of loan consolidators.
Consolidating the deferral student loans
It is not a tough job to consolidate your federal student loans. However, it is better to try out the other repayment options before you opt to consolidate your federal loans.
The Direct Consolidation Loan is the most common and easiest way to consolidate your federal student loans. It provides you the option to combine together the multiple loans you have as one. Just like any of the other consolidation programs in this case too, you would be required to make a single monthly payment in place of the several ones which you have been making prior to this. The time within which you may have to repay the loan, gets extended too.
If you want to qualify for a Direct Consolidation Loan, you will be required to have one Federal Family Education Loan or FFEL or a Direct Loan which is either under the repayment status or in the grace period. Repayment status includes loans that are in a deferment or forbearance period. So, if your loan is in the school status you will not have the option to include it within a Direct Consolidation Loan.
You can however consolidate the student loans in default. This is possible only if you can make a satisfactory repayment arrangement with the lender. The other option is where you will have to agree to a repayment option where you will have to make payments on the new Direct Consolidation Loan as per ICR or IBR (Income Contingent Repayment Plan or Income Based Repayment Plan).
You can consolidate the Direct Loans, the Perkins Loan and also the Plus Loan. As for the Perkins Loan, you can consolidate it only if you have a FFEL or Direct loan. You can also include some of the health profession loans into a Direct Consolidation Loan and these are:
Health Professions Student Loans (HPSL)
Health Education Assistance Loans (HEAL)
Loans for Disadvantaged Students (LDS)
Nursing Student Loans (NSL)
There also are options for you to consolidate your existing consolidation loan. In this case too if you have either a FFEL or Direct Loan, you can roll over your Direct Consolidation Loan or the Federal Consolidation Loan into a new Direct Consolidation Loan.
So, this is how you can go on to consolidate the federal student loans without even the help of loan consolidators. Unlike that of the private student loans, in this case you need get any professional help. You can rather consult your lender and check out information directly from the federal government website.