When it comes to consolidating your student loans, can you refinance part of them? You may be aware that consolidating your student debt will enable you to take a subsidized rate on your loan. That is, the federal government pays a portion of your college loan, making your payments more affordable. But can you consolidate all of your loans at once, or are there eligibility requirements?
In the old days before the consolidation programs were put in place, students had to consolidate all of their school loans by going through the traditional school lending institutions. There are many rules and regulations regarding these loans. Many times if you don’t meet the eligibility criteria, you can lose your chance at getting a subsidized loan from the federal government. The rule regarding financial aid is that you need to be a full-time student who is enrolled full time in an eligible post-secondary education program in order to be considered for a school loan.
Can you refinance part of your student loans if you are not currently attending school? In the past, you could possibly consolidate the Federal Perkins, Direct and FFELP (FAFSA) school loans. Now the Direct Loans, Federal Subsidized Stafford and PLUS loans still apply. You need to be a full-time student at an eligible college or university in order to consolidate these. There are some private lenders that consolidating these types of loans as well. So check out all of your options before making a final decision on which to consolidate.
Before you apply for a school loan, there are a few things that you should know. If you qualify, you will be required to fill out a FAFSA or Free Application for Federal Student Aid. This is a form that you will need to fill out once you have been accepted to a college or university. Your school financial aid office will help you complete this form with the help of the FAFSA Financial Aid office.
If you do not qualify for a FAFSA loan, you may still be able to consolidate these types of loans. Talk with your school about getting a Private Loan Consolidation or Private Appraisal Loan. These loans are available through many lenders, banks and other financial institutions. Lenders who work with the United States Department of Education on behalf of schools can sometimes help consolidate the Federal Perkins Loans and the Direct Plus loans as well.
These loans are issued by private lenders that specialize in lending to students needing to consolidate their Federal Direct and FFELP student loans. Some of these lenders are also able to consolidate the Direct and FFELP loans for other students who qualify. Private loans are different from Federal loans. They have slightly higher interest rates and slightly different terms and conditions.
If you need to consolidate your federal direct loans, talk to your loan servicer. Your loan servicer is a person or company that works directly with the Department of Education to help you obtain the best terms on your student loans. They will help you fill out the application for a consolidation government loan and they will help you understand the repayment plans and the programs that are available to you. One thing that is important to remember is that if you have federal loans you need to consolidate them first. There is a lot of bureaucracy involved with the Direct Loan Servicing Center and with the Federal Family Education Loan Program. It would be a great disservice to mess around with a program designed for students if you do not have those loans consolidated first.
To help consolidate your loans, talk to your loan servicer or contact the LMS – loan management service. They can offer you good advice and give you options for consolidating your loans. To learn more about getting government consolidation loans, go to the Sallie Mae website. Remember that you need to consolidate your federal loans before you can refinance them.