Us government consolidating student loans
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.
Perkins Loans are federally-guaranteed student loans that are issued jointly, by the U. government and individual financial aid departments at colleges and universities.
The low-interest, fixed-rate loans are in-place to provide supplemental funding for students with extraordinary financial aid needs for college. Ford Federal Direct Loans provide general assistance for low and middle-income applicants.
Students with multiple federal loans are increasingly concerned about how they will meet repayment obligations after graduation.
It is important to recognize your current rates, and compare them to potentially lower consolidation options.
The number one drawback to consolidating a Perkins Loan is the loss of loan cancellation benefits.
If you are, or will be, a public school teacher, or if you teach math, science or special education subjects, you may qualify for Perkins loan cancellation.
It’s common to leave school with a mix of federal and private loans.
You could very likely have multiple loan servicers, due dates, and minimum payments.