Consolidating loan stafford

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Once you consolidate through the Direct Federal Loan Program you lose the grace period provided with your Perkins Loan, which is nine months – compared to the six month periods for other loans, like Stafford.

Many lenders have expanded their portfolios of debt management tools to include lower-cost alternatives to student loan consolidation.

Over the course of a student’s post-secondary education, he or she may enter into multiple loan arrangements, with private lenders, as well as the Department of Education.

Perkins borrowers may have multiple outstanding loans, but many students also carry federal Stafford Loans, and others issued through the Direct Loan Program.

Maximum Loan Amount: None Interest Rate: Weighted average interest rate on the loans being consolidated, rounded to the nearest one-eighth of 1 percent, not to exceed 8.25 percent.

Currently, the interest rate is fixed for the life of the loan.

Perkins Loans feature special benefits and perks that are not always recommended for consolidation.

The advantages realized by student who participate in the Federal Direct Consolidation Loan Program are several.

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It is important to recognize your current rates, and compare them to potentially lower consolidation options.By extending the term of student loan repayment, or selecting an individual payment plan that matches income levels and ability to pay, borrowers who participate in the Consolidation Program sometimes have lower monthly payments on the new loans.It should be noted, however, that extending repayment terms also adds more total interest to the loan, over its entire lifetime.If you hold private loans, and are having a hard time making payments, consult with your loan representative to help evaluate your resources, debt obligation, and ability to pay.The best consolidation or student loan repayment alternatives help students avoid default, which has significant long-term consequences.

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