Student Loan Consolidation Programs

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Defaulted Student Loans & Consolidation Programs - FFEL

The FFEL Loan Consolidation Program is another way to get your student loans out of defaulted status. The federal loan rehabilitation program and the FFEL Loan Consolidation Program are the two best methods to return your loan to good standing. Read this one to get the lowdown on the FFEL Loan Consolidation Program, if your student  loan are in default then you can't afford not to.
Consolidation loans allow you to combine different types of federal student loans to simplify repayment. Even if you have just one loan, you can also choose to consolidate it. Both the FFEL and Direct Loan Programs offer consolidation loans. There are several advantages to consolidate or rehabilitate your loan as described in the categories below.

FFEL Consolidation Loans

A FFEL Consolidation Loan is designed to help student and parent borrowers consolidate several types of federal student loans with various repayment schedules into one loan. With a FFEL Consolidation Loan, you will make only one payment a month. Under this program, your consolidation loan will be made by a commercial lender, credit bureaus will be notified that your account has a zero balance, and you will sign a new promissory note that will establish a new interest rate and repayment schedule. To receive a FFEL Consolidation Loan, you must be in repayment on your defaulted loan (that is, three voluntary, on-time, full monthly payments). Depending on the balance due, the repayment period may extend up to 30 years. If you owe no other delinquent or defaulted debts to the United States, you will again be eligible for other federal funds, including FHA loans, VA loans, and Title IV student financial aid funds.

Posted by nicod3mus on September 14, 2007 05:08 PM |

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