Borrowers struggle to get accurate information from their servicers. Confusion about federal student loans creates opportunities for scammers to take advantage of borrowers. Borrowers fall into default, unaware that programs exist to keep their monthly payments manageable. Plenty of Blame to Go Around ...
Student loan consolidation combines multiple federal student loans into a single, new federal loan. This can simplify your payments, lower your monthly bill and lengthen your repayment term. The easiest way to consolidate your student loans onstudentaid.gov. Alternatively, you can trade in multiple ...
If you consolidate federal loans into a private loan, you will lose some of the benefits that federal loans offer. How Does Student Loan Consolidation Work? There are two basic ways toconsolidate your student loans. You can do so either through a private lender or the federal government. Only...
The second benefit to automatic repayments is that these can make your student loans cheaper. Federal loan providers and some private loan providers offer discounts on interest rates if you set up an automatic payment into your checking account. In the case of federal student loans, this discount...
With federal student loans, you first have to consider whether using anincome-driven repayment (IDR) planmight work as well as a settlement. In order to use an IDR plan, however, you need to make sure you're out of default. If you haven't made a payment in 270 days, your loans are...
Step 1. Preparing to Apply As you consider what type of student loan is best for you, it’s crucial to understand your options. Most students will choose between two: federal student loans and private loans. Researching Loan Options
The student loan servicer can also help you understand whether you are eligible for an identity theft discharge and assemble the required evidence. Be prepared to provide documentation as needed, including samples of your signature and photocopies of your Social Security card, driver’s lice...
With federal student loans, you can’t get a lower interest rate by consolidating — your new interest will be a weighted average of your current rates.The only way you can get a new interest rate for your federal loans is to refinance them into a private loan. Most importantly, consolidat...
Subsidized loans are usually given to federal employees who are in need to financial assistance. You will need to consult the FAFSA or the Free Application for Federal Student Aid to see if you’re an eligible candidate. Once you qualify, the loan will bear no interest and the government ...
You can discharge defaulted student loans via bankruptcy, but federal student loans are trickier to get rid of through this process than other debts. Private student loans may be easier to discharge in bankruptcy. Make sure bankruptcy is right for you because it has a long-term effect on your...