We offer solutions to your student loan debt obligations that will save you time and money!
Each Credilife® Student Loan Specialist is trained in the variations of federal government debt relief programs as well as the technical aspects of accessing the details of a your outstanding student loans. Trained to take into consideration not only the programs that have been made available to help borrowers reduce the burden of repaying their student loan debts, but also the impact of each program on a borrowers short and long term credit related goals, and the responsibilities toward a variation of commitments dependent on the program type selected.
We strive to help borrowers understand the federal direct loan program and the 5 repayment plans, as well as private student loan refinance options.
Student loan debt has become an epidemic. We will help to evaluate and understand your options for student loan debt relief through student loan consolidation options, or rehabilitation programs in cases where a student loan has already gone into default.
We will review the status of your existing student loan debts, your current financial situation, and credit status, as well as a variety of other factors dependent on each program type. With these details we are able to identify the programs that you qualify for including federal programs for student loan debt forgiveness eligibility.
After careful consideration of each option, and the potential impact on your short and long term goals, we will help to facilitate the consolidation or rehabilitation process. We hold ourselves to the highest ethical and public serving standards, and we love what we do! If you have any questions concerning yourself or someone you know who is looking for guidance concerning their student loans, please do not hesitate to give us a call and schedule a free, no obligation assessment.
Carefully consider whether loan consolidation is the best option for you. Loan consolidation can greatly simplify loan repayment by centralizing your loans to one bill and can lower monthly payments by giving you up to 30 years to repay your loans. You might also have access to alternative repayment plans you would not have had before, and you’ll be able to switch your variable interest rate loans to a fixed interest rate.
However, if you increase the length of your repayment period, you’ll also make more payments and pay more in interest. Be sure to compare your current monthly payments to what monthly payments would be if you consolidated your loans.
You also should consider the impact of losing any borrower benefits offered with the original loans. Borrower benefits from your original loan, which may include interest rate discounts, principal rebates, or some loan cancellation benefits, can significantly reduce the cost of repaying your loans. You might lose those benefits if you consolidate.
If you want to lower your monthly payment amount but are concerned about the impact of loan consolidation, you can consider reevaluating your budget and income situation. You can also consider deferment or forbearance as options for short-term payment relief needs.
Once your loans are combined into a Direct Consolidation Loan, they cannot be removed. The loans that were consolidated are paid off and no longer exist.
Here are some tips on qualifying for a Direct Consolidation Loan:
You must have at least one Direct Loan or FFEL Program loan that is in a grace period or in repayment.
If you want to consolidate a defaulted loan, you must either make satisfactory repayment arrangements on the loan with your current loan servicer before you consolidate, or you must agree to repay your new Direct Consolidation Loan under the…
Income-Based Repayment Plan,
Pay As You Earn Repayment Plan, or
Income-Contingent Repayment Plan.
Generally, you cannot consolidate an existing consolidation loan again unless you include an additional Direct Loan or FFEL Program loan in the consolidation. However, under certain circumstances you may reconsolidate an existing FFEL Consolidation Loan without including any additional loans.
A Direct Consolidation Loan has a fixed interest rate for the life of the loan. The fixed rate is based on the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest one-eighth of 1%. There is no cap on the interest rate of a Direct Consolidation Loan.
Most federal student loans, including the following, are eligible for consolidation:
– Direct Subsidized Loans
– Direct Unsubsidized Loans
– Subsidized Federal Stafford Loans
– Unsubsidized Federal Stafford Loans
– Direct PLUS Loans
– PLUS loans from the Federal Family Education Loan (FFEL) Program
– Supplemental Loans for Students (SLS)
– Federal Perkins Loans
– Federal Nursing Loans
– Health Education Assistance Loans
– Some existing consolidation loans
Private education loans are not eligible for consolidation. If you are in default, you must meet certain requirements before you can consolidate your loans.
A PLUS loan made to the parent of a dependent student cannot be transferred to the student through consolidation. Therefore, a student who is applying for loan consolidation cannot include the PLUS loan the parent took out for the dependent student’s education.
A complete list of the federal student loans eligible for consolidation is available in the application.
Generally, you are eligible to consolidate after you graduate, leave school, or drop below half-time enrollment.
Repayment of a Direct Consolidation Loan can begin 60 days after the loan is disbursed, or sooner. Your loan servicer will let you know when the first payment is due. The repayment term ranges from 10 to 30 years, depending on the amount of your consolidation loan, your other education loan debt, and the repayment plan you select.
Note: If any loan you want to consolidate is still in the grace period, you can delay entering repayment on your new Direct Consolidation Loan until closer to your grace period end date. You will indicate this when you apply, and the consolidation servicer will wait to process your application until the appropriate time.
This is the amount of the academic work you must complete each year, and the time period in which you are expected to complete it, as defined by your school. For example, your school’s academic year may be made up of a fall and spring semester, during which a full-time undergraduate student is expected to complete at least 24 semester hours, usually called credits or credit hours, over the course of 30 weeks of instructional time. Academic years change from school to school and even from educational program to educational program at the same school.
For purposes of the Teacher Loan Forgiveness Program, an academic year is defined as one complete school year at the same school, or two complete and consecutive half years at different schools, or two complete and consecutive half years from different school years (at either the same school or different schools). Half years exclude summer sessions and generally fall within a 12-month period. For schools that have a year-round program of instruction, nine months is considered an academic year.
Confirms that the college or career school meets certain minimum academic standards, as defined by an accrediting body recognized by the U.S. Department of Education. Schools must be accredited to be eligible to participate in federal student aid programs.
From the 2009–10 award year through the 2010–11 award year, eligible students could receive up to two Federal Pell Grants within a single award year. The Additional Eligibility field on the Grant Detail page in a student’s My Federal Student Aid account indicates whether a student was eligible for two Pell Grants in a single award year.
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