Consolidating stafford student loans

There are numerous problems that can arise–for example, if one of the divorced ex-spouses wants to apply for IBR.

The Department says that borrowers with joint consolidation loans may repay under the IBR/PAYE plan as long as both spouses qualify with partial financial hardships.

(see box below), You can consolidate during grace periods.

This may lead to a lower interest rate on a Direct Consolidation loan, but only if you are consolidating variable rate loans. You will generally receive your first bills within 60 days after the new Direct Consolidation loan is made.

Loans that are not eligible for consolidation include state or private loans that are not federally guaranteed.

Although all of these different loans may be consolidated, you must have at least one outstanding FFEL or Direct Loan to obtain a Direct Consolidation Loan.

You can consolidate all, just some, or even just one of your student loans.

Consolidating federal student loans may be a good strategy to lower monthly payments or to get out of default, but it is not always a good idea.

You can indicate this when you apply, and the consolidation servicer will wait to process your application until the appropriate time.

These circumstances are: Borrowers cannot consolidate private student loans with the federal consolidation loan programs.

However, if you have private loans, you may want to think about consolidating these loans into a new private consolidation loan.

This means, for example, that a Perkins Loan on its own cannot be consolidated into a Direct Loan.

You may consolidate with Direct Loans during grace periods, once you have entered repayment, or during periods of deferment or forbearance.

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The Department strongly encourages borrowers to apply on-line, but you may also download and print a paper application to submit by regular mail. Prior to July 1, 2006, married borrowers could choose to consolidate federal student loans from both spouses or jointly consolidate the loans of either spouse.

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