Consolidating federal direct loans

Depending upon the total balance you are consolidating, you may extend the repayment period for up to 30 years with consolidation.The extended period makes the monthly payment amount more manageable; however, the longer your loans are in repayment, the more interest you will pay over the life of the loan.

[Back to top] Applying for consolidation takes most borrowers less than 30 minutes, according to the Federal Student Aid website.The funds you receive are disbursed to pay off your original federal student loans, leaving only the consolidation loan to pay off.Consolidating debt is generally done to simplify debt repayment.Most of the current deferment and forbearance provisions of Direct student loans are retained after being consolidated.Specific deferment options include: Repayment terms range from 10 to 30 years, depending on the amount being refinanced.

Leave a Reply