Student loan consolidation federal
when deciding if consolidation is right for you:
Are your monthly payments manageable If you have trouble meeting your monthly payments, have exhausted your deferment and forbearance options, and/or want to avoid default, a Direct Consolidation Loan may help you..
Too many monthly payments driving you crazy If you send payments to more than one lender every month, and want the convenience of a single monthly payment, consolidation may be right for you. With a Direct student loan consolidation federal you will have a single lender - the U.S. Department of Education - and a single monthly payment.
What are the interest rates on your loans If you have variable interest rates on your Federal education loans, you may want to consolidate. The interest rate for a Direct Consolidation Loan is fixed for the life of the Direct student loan consolidation federal. The rate is based on the weighted average interest rate of the loans being consolidated, rounded to the next nearest higher one-eighth of one percent and can not exceed 8.25 percent. How much are you willing to pay over the long term Like a home mortgage or a car loan, extending the years of repayment increases the total amount you have to repay.
How many payments do you have left on your loans If you are close to paying off your student loans, it may not be worth the effort to consolidate or extend your payments.
Eligibility:
Here are some factors you should consider
when deciding if consolidation is right for you.
Are your monthly payments manageable If you have trouble meeting your monthly payments, have exhausted your deferment and forbearance options, and/or want to avoid default, a Direct student loan consolidation federal may help you..
Too many monthly payments driving you crazy If you send payments to more than one lender every month, and want the convenience of a single monthly payment, consolidation may be right for you. With a Direct Consolidation Loan, you will have a single lender - the U.S. Department of Education - and a single monthly payment.
What are the interest rates on your loans If you have variable interest rates on your Federal education loans, you may want to consolidate. The interest rate for a Direct Consolidation Loan is fixed for the life of the Direct Consolidation Loan. The rate is based on the weighted average interest rate of the loans being consolidated, rounded to the next nearest higher one-eighth of one percent and can not exceed 8.25 percent. How much are you willing to pay over the long term Like a home mortgage or a car loan, extending the years of repayment increases the total amount you have to repay.
How many payments do you have left on your loans If you are close to paying off your student loans, it may not be worth the effort to consolidate or extend your payments.
ELIGIBILITY
The Direct Loan Program is authorized by Title IV, Part D, of the Higher Education Act of 1965, as amended (the Act).
A Direct Loan is made by the United States Government and is administered by the U.S. Department of Education (ED). ED's Direct Loan Servicing Center will manage, answer questions about, and collect my loan. I will be provided with the address and telephone number of the Direct Loan Servicing Center when my Direct Consolidation Loan is made.
1. Change of Status. Under federal law, I must notify the Direct Loan Servicing Center, in writing, if any of the following events occurs before my loan is repaid:
* I change my address
* I change my name (for example, maiden name to married name)
* I change my employer or my employer's address or telephone number changes
* I have any other change in status that would affect my loan (for example, the loss of eligibility for an unemployment deferment by obtaining a job)
If I am still in school, I must notify my school's financial aid office if any of the following events takes place:
* I reduce my enrollment status to less than half time
* I withdraw from school
*I stop attending classes
*I fail to enroll for any term
* I have a change in my expected graduation date
* I change my name, local address, or permanent address
To qualify for Direct C onsolidation Loans, borrowers must have at least one Direct or Federal Family Education Loan (FFEL) Program loan that is in grace, repayment, deferment or default status. Loans that are in an in-school status cannot be included in a Direct student loan consolidation federal.
Borrowers can consolidate most defaulted FFEL and Direct Loan Program loans, if they make satisfactory repayment arrangements with the current loan holders or agree to repay their new Direct Consolidation Loan under the Income Contingent Repayment Plan.
Borrowers who do not have Direct Loans may be eligible for a Direct student loan consolidation federal if they include at least one FFEL Loan and have been unable to obtain a Federal Consolidation Loan with a FFEL consolidation lender or have been unable to obtain a Federal Consolidation Loan with income-sensitive repayment terms acceptable to them.
APPLICATION PROCEDURES
There are several ways that you can apply for a Direct Consolidation Loan:
Online Web Application - Apply online
Express Phone Application -. Apply over the phone if you have all Direct Loans.
Paper Application
* Download a paper copy of the application and promissory note - including the complete contents of the application package.
* Federal Direct Consolidation Loan
Borrower's Rights and Responsibilities
WILLIAM D FORD FEDERAL DIRECT LOAN PROGRAAME
The William D. Ford Federal Direct Loan (Direct Loan) Program includes the following Direct Loans:
Federal Direct Stafford/Ford Loans (Direct Subsidized Loans)
Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Loans)
Federal Direct PLUS Loans (Direct PLUS Loans)
Federal Direct Consolidation Loans (Direct Consolidation Loans)
The Direct Loan Program is authorized by Title IV, Part D, of the Higher Education Act of 1965, as amended (the Act).
A Direct Loan is made by the United States Government and is administered by the U.S. Department of Education (ED). ED's Direct Loan Servicing Center will manage, answer questions about, and collect my loan. I will be provided with the address and telephone number of the Direct Loan Servicing Center when my Direct Consolidation Loan is made.
1. Change of Status. Under federal law, I must notify the Direct Loan Servicing Center, in writing, if any of the following events occurs before my loan is repaid:
I change my address
I change my name (for example, maiden name to married name)
I change my employer or my employer's address or telephone number changes
I have any other change in status that would affect my loan (for example, the loss of eligibility for an unemployment deferment by obtaining a job)
If I am still in school, I must notify my school's financial aid office if any of the following events takes place:
I reduce my enrollment status to less than half time
I withdraw from school
I stop attending classes
I fail to enroll for any term
I have a change in my expected graduation date
I change my name, local address, or permanent address
2. Loan Identification Numbers. My Direct Consolidation Loan may have up to three individual loan identification numbers. These numbers will be determined and assigned by ED depending on the loan(s) that I have chosen to consolidate. Even if three separate consolidation loan identification numbers are assigned by ED, I have only one Direct Consolidation Loan and will receive only one bill.
2a. The following subsidized loans will be consolidated under one loan identification number:
Subsidized Federal Stafford Loans
Guaranteed Student Loans (GSL)
Federal Insured Student Loans (FISL)
Federal Direct Stafford/Ford Loans
Federal Direct Subsidized Consolidation Loans
Federal Perkins Loans
National Direct Student Loans (NDSL)
National Defense Student Loans (NDSL)
Subsidized Federal Consolidation Loans
2b. The following unsubsidized loans will be consolidated under one loan identification number:
Unsubsidized Federal Stafford Loans (including Non-Subsidized Stafford Loans made prior to 10/1/92)
Federal Supplemental Loans for Students (SLS)
Unsubsidized Federal Consolidation Loans
Federal Direct Unsubsidized Consolidation Loans
Federal Direct Unsubsidized Stafford/Ford Loans
Auxiliary Loans to Assist Students (ALAS)
Health Professions Student Loans (HPSL)
Health Education Assistance Loans (HEAL)
Nursing Student Loans (NSL)
Loans for Disadvantaged Students (LDS)
2c. The following parent PLUS loans (unsubsidized) will be consolidated under one loan identification number:
Federal PLUS Loans
Parent Loans for Undergraduate Students (PLUS)
Federal Direct PLUS Loans
Federal Direct PLUS Consolidation Loans
3. Interest Rate. It is my responsibility to pay interest on my loan. Interest will be calculated according to the applicable formulas provided for by the Act and/or ED's regulations. The interest rate that applies to my loan will be included in a letter that I will receive from the Direct Loan Servicing Center when my Direct Consolidation Loan is made.
The interest rate on my Direct Consolidation Loan will be based on the weighted average of the interest rates on the loans being consolidated, rounded to the nearest higher one-eighth of one percent, but shall not exceed 8.25%. This is a fixed interest rate, which means that the rate will remain the same throughout the life of the loan.
4. Interest Charges. Interest will be charged from the date my Direct Consolidation Loan is made. However, for all of the loans that I consolidate from Item 2a, ED will not charge interest on my Direct Consolidation Loan during in-school, grace, and deferment periods. For all of the loans that I consolidate from Items 2b and 2c, ED will charge interest on my Direct Consolidation Loan during all periods.
ED will charge interest on my Direct Consolidation Loan during a forbearance period.
I must pay any interest charged during an authorized period of deferment or forbearance or capitalize the unpaid accrued interest by having it added to the loan principal at the end of the deferment or forbearance period, as provided under the Act. If I choose to capitalize unpaid accrued interest, the total cost of my loan will increase.
The Taxpayer Relief Act of 1997 may allow me to claim a federal income tax deduction for interest payments I make on Direct Loans for the first 60 months (whether consecutive or not) that such loans are in repayment. The deduction applies to interest payments I make on or after January 1, 1998. For further information, I may refer to the Internal Revenue Service (IRS) Publication 970,
Federal Direct Consolidation Loan
Borrower's Rights and Responsibilities
The William D. Ford Federal Direct Loan (Direct Loan) Program includes the following Direct Loans:
Federal Direct Stafford/Ford Loans (Direct Subsidized Loans)
Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Loans)
Federal Direct PLUS Loans (Direct PLUS Loans)
Federal Direct Consolidation Loans (Direct Consolidation Loans)
The Direct Loan Program is authorized by Title IV, Part D, of the Higher Education Act of 1965, as amended (the Act).
A Direct Loan is made by the United States Government and is administered by the U.S. Department of Education (ED). ED's Direct Loan Servicing Center will manage, answer questions about, and collect my loan. I will be provided with the address and telephone number of the Direct Loan Servicing Center when my Direct Consolidation Loan is made.
1. Change of Status. Under federal law, I must notify the Direct Loan Servicing Center, in writing, if any of the following events occurs before my loan is repaid:
I change my address
I change my name (for example, maiden name to married name)
I change my employer or my employer's address or telephone number changes
I have any other change in status that would affect my loan (for example, the loss of eligibility for an unemployment deferment by obtaining a job)
If I am still in school, I must notify my school's financial aid office if any of the following events takes place:
I reduce my enrollment status to less than half time
I withdraw from school
I stop attending classes
I fail to enroll for any term
I have a change in my expected graduation date
I change my name, local address, or permanent address
2. Loan Identification Numbers. My Direct Consolidation Loan may have up to three individual loan identification numbers. These numbers will be determined and assigned by ED depending on the loan(s) that I have chosen to consolidate. Even if three separate consolidation loan identification numbers are assigned by ED, I have only one Direct Consolidation Loan and will receive only one bill.
2a. The following subsidized loans will be consolidated under one loan identification number:
Subsidized Federal Stafford Loans
Guaranteed Student Loans (GSL)
Federal Insured Student Loans (FISL)
Federal Direct Stafford/Ford Loans
Federal Direct Subsidized Consolidation Loans
Federal Perkins Loans
National Direct Student Loans (NDSL)
National Defense Student Loans (NDSL)
Subsidized Federal Consolidation Loans
2b. The following unsubsidized loans will be consolidated under one loan identification number:
Unsubsidized Federal Stafford Loans (including Non-Subsidized Stafford Loans made prior to 10/1/92)
Federal Supplemental Loans for Students (SLS)
Unsubsidized Federal Consolidation Loans
Federal Direct Unsubsidized Consolidation Loans
Federal Direct Unsubsidized Stafford/Ford Loans
Auxiliary Loans to Assist Students (ALAS)
Health Professions Student Loans (HPSL)
Health Education Assistance Loans (HEAL)
Nursing Student Loans (NSL)
Loans for Disadvantaged Students (LDS)
2c. The following parent PLUS loans (unsubsidized) will be consolidated under one loan identification number:
Federal PLUS Loans
Parent Loans for Undergraduate Students (PLUS)
Federal Direct PLUS Loans
Federal Direct PLUS Consolidation Loans
3. Interest Rate. It is my responsibility to pay interest on my loan. Interest will be calculated according to the applicable formulas provided for by the Act and/or ED's regulations. The interest rate that applies to my loan will be included in a letter that I will receive from the Direct Loan Servicing Center when my Direct Consolidation Loan is made.
The interest rate on my Direct Consolidation Loan will be based on the weighted average of the interest rates on the loans being consolidated, rounded to the nearest higher one-eighth of one percent, but shall not exceed 8.25%. This is a fixed interest rate, which means that the rate will remain the same throughout the life of the loan.
4. Interest Charges. Interest will be charged from the date my Direct Consolidation Loan is made. However, for all of the loans that I consolidate from Item 2a, ED will not charge interest on my Direct Consolidation Loan during in-school, grace, and deferment periods. For all of the loans that I consolidate from Items 2b and 2c, ED will charge interest on my Direct Consolidation Loan during all periods.
ED will charge interest on my Direct Consolidation Loan during a forbearance period.
I must pay any interest charged during an authorized period of deferment or forbearance or capitalize the unpaid accrued interest by having it added to the loan principal at the end of the deferment or forbearance period, as provided under the Act. If I choose to capitalize unpaid accrued interest, the total cost of my loan will increase.
The Taxpayer Relief Act of 1997 may allow me to claim a federal income tax deduction for interest payments I make on Direct Loans for the first 60 months (whether consecutive or not) that such loans are in repayment. The deduction applies to interest payments I make on or after January 1, 1998. For further information, I may refer to the Internal Revenue Service (IRS) Publication 970,
Federal Direct Consolidation Loan
Borrower's Rights and Responsibilities
The William D. Ford Federal Direct Loan (Direct Loan) Program includes the following Direct Loans:
Federal Direct Stafford/Ford Loans (Direct Subsidized Loans)
Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Loans)
Federal Direct PLUS Loans (Direct PLUS Loans)
Federal Direct Consolidation Loans (Direct Consolidation Loans)
The Direct Loan Program is authorized by Title IV, Part D, of the Higher Education Act of 1965, as amended (the Act).
A Direct Loan is made by the United States Government and is administered by the U.S. Department of Education (ED). ED's Direct Loan Servicing Center will manage, answer questions about, and collect my loan. I will be provided with the address and telephone number of the Direct Loan Servicing Center when my Direct Consolidation Loan is made.
1. Change of Status. Under federal law, I must notify the Direct Loan Servicing Center, in writing, if any of the following events occurs before my loan is repaid:
I change my address
I change my name (for example, maiden name to married name)
I change my employer or my employer's address or telephone number changes
I have any other change in status that would affect my loan (for example, the loss of eligibility for an unemployment deferment by obtaining a job)
If I am still in school, I must notify my school's financial aid office if any of the following events takes place:
I reduce my enrollment status to less than half time
I withdraw from school
I stop attending classes
I fail to enroll for any term
I have a change in my expected graduation date
I change my name, local address, or permanent address
2. Loan Identification Numbers. My Direct Consolidation Loan may have up to three individual loan identification numbers. These numbers will be determined and assigned by ED depending on the loan(s) that I have chosen to consolidate. Even if three separate consolidation loan identification numbers are assigned by ED, I have only one Direct Consolidation Loan and will receive only one bill.
2a. The following subsidized loans will be consolidated under one loan identification number:
Subsidized Federal Stafford Loans
Guaranteed Student Loans (GSL)
Federal Insured Student Loans (FISL)
Federal Direct Stafford/Ford Loans
Federal Direct Subsidized Consolidation Loans
Federal Perkins Loans
National Direct Student Loans (NDSL)
National Defense Student Loans (NDSL)
Subsidized Federal Consolidation Loans
2b. The following unsubsidized loans will be consolidated under one loan identification number:
Unsubsidized Federal Stafford Loans (including Non-Subsidized Stafford Loans made prior to 10/1/92)
Federal Supplemental Loans for Students (SLS)
Unsubsidized Federal Consolidation Loans
Federal Direct Unsubsidized Consolidation Loans
Federal Direct Unsubsidized Stafford/Ford Loans
Auxiliary Loans to Assist Students (ALAS)
Health Professions Student Loans (HPSL)
Health Education Assistance Loans (HEAL)
Nursing Student Loans (NSL)
Loans for Disadvantaged Students (LDS)
2c. The following parent PLUS loans (unsubsidized) will be consolidated under one loan identification number:
Federal PLUS Loans
Parent Loans for Undergraduate Students (PLUS)
Federal Direct PLUS Loans
Federal Direct PLUS Consolidation Loans
3. Interest Rate. It is my responsibility to pay interest on my loan. Interest will be calculated according to the applicable formulas provided for by the Act and/or ED's regulations. The interest rate that applies to my loan will be included in a letter that I will receive from the Direct Loan Servicing Center when my Direct Consolidation Loan is made.
The interest rate on my Direct Consolidation Loan will be based on the weighted average of the interest rates on the loans being consolidated, rounded to the nearest higher one-eighth of one percent, but shall not exceed 8.25%. This is a fixed interest rate, which means that the rate will remain the same throughout the life of the loan.
4. Interest Charges. Interest will be charged from the date my Direct Consolidation Loan is made. However, for all of the loans that I consolidate from Item 2a, ED will not charge interest on my Direct Consolidation Loan during in-school, grace, and deferment periods. For all of the loans that I consolidate from Items 2b and 2c, ED will charge interest on my Direct Consolidation Loan during all periods.
ED will charge interest on my Direct Consolidation Loan during a forbearance period.
I must pay any interest charged during an authorized period of deferment or forbearance or capitalize the unpaid accrued interest by having it added to the loan principal at the end of the deferment or forbearance period, as provided under the Act. If I choose to capitalize unpaid accrued interest, the total cost of my loan will increase.
The Taxpayer Relief Act of 1997 may allow me to claim a federal income tax deduction for interest payments I make on Direct Loans for the first 60 months (whether consecutive or not) that such loans are in repayment. The deduction applies to interest payments I make on or after January 1, 1998. For further information, I may refer to the Internal Revenue Service (IRS) Publication 970, which is available at http://www.irs.ustreas.gov/.
Federal Direct Consolidation Loan
Borrower's Rights and Responsibilities
The William D. Ford Federal Direct Loan (Direct Loan) Program includes the following Direct Loans:
Federal Direct Stafford/Ford Loans (Direct Subsidized Loans)
Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Loans)
Federal Direct PLUS Loans (Direct PLUS Loans)
Federal Direct Consolidation Loans (Direct Consolidation Loans)
The Direct Loan Program is authorized by Title IV, Part D, of the Higher Education Act of 1965, as amended (the Act).
A Direct Loan is made by the United States Government and is administered by the U.S. Department of Education (ED). ED's Direct Loan Servicing Center will manage, answer questions about, and collect my loan. I will be provided with the address and telephone number of the Direct Loan Servicing Center when my Direct Consolidation Loan is made.
1. Change of Status. Under federal law, I must notify the Direct Loan Servicing Center, in writing, if any of the following events occurs before my loan is repaid:
I change my address
I change my name (for example, maiden name to married name)
I change my employer or my employer's address or telephone number changes
I have any other change in status that would affect my loan (for example, the loss of eligibility for an unemployment deferment by obtaining a job)
If I am still in school, I must notify my school's financial aid office if any of the following events takes place:
I reduce my enrollment status to less than half time
I withdraw from school
I stop attending classes
I fail to enroll for any term
I have a change in my expected graduation date
I change my name, local address, or permanent address
2. Loan Identification Numbers. My Direct Consolidation Loan may have up to three individual loan identification numbers. These numbers will be determined and assigned by ED depending on the loan(s) that I have chosen to consolidate. Even if three separate consolidation loan identification numbers are assigned by ED, I have only one Direct Consolidation Loan and will receive only one bill.
2a. The following subsidized loans will be consolidated under one loan identification number:
Subsidized Federal Stafford Loans
Guaranteed Student Loans (GSL)
Federal Insured Student Loans (FISL)
Federal Direct Stafford/Ford Loans
Federal Direct Subsidized Consolidation Loans
Federal Perkins Loans
National Direct Student Loans (NDSL)
National Defense Student Loans (NDSL)
Subsidized Federal Consolidation Loans
2b. The following unsubsidized loans will be consolidated under one loan identification number:
Unsubsidized Federal Stafford Loans (including Non-Subsidized Stafford Loans made prior to 10/1/92)
Federal Supplemental Loans for Students (SLS)
Unsubsidized Federal Consolidation Loans
Federal Direct Unsubsidized Consolidation Loans
Federal Direct Unsubsidized Stafford/Ford Loans
Auxiliary Loans to Assist Students (ALAS)
Health Professions Student Loans (HPSL)
Health Education Assistance Loans (HEAL)
Nursing Student Loans (NSL)
Loans for Disadvantaged Students (LDS)
2c. The following parent PLUS loans (unsubsidized) will be consolidated under one loan identification number:
Federal PLUS Loans
Parent Loans for Undergraduate Students (PLUS)
Federal Direct PLUS Loans
Federal Direct PLUS Consolidation Loans
3. Interest Rate. It is my responsibility to pay interest on my loan. Interest will be calculated according to the applicable formulas provided for by the Act and/or ED's regulations. The interest rate that applies to my loan will be included in a letter that I will receive from the Direct Loan Servicing Center when my Direct Consolidation Loan is made.
The interest rate on my Direct Consolidation Loan will be based on the weighted average of the interest rates on the loans being consolidated, rounded to the nearest higher one-eighth of one percent, but shall not exceed 8.25%. This is a fixed interest rate, which means that the rate will remain the same throughout the life of the loan.
4. Interest Charges. Interest will be charged from the date my Direct Consolidation Loan is made. However, for all of the loans that I consolidate from Item 2a, ED will not charge interest on my Direct Consolidation Loan during in-school, grace, and deferment periods. For all of the loans that I consolidate from Items 2b and 2c, ED will charge interest on my Direct Consolidation Loan during all periods.
ED will charge interest on my Direct Consolidation Loan during a forbearance period.
I must pay any interest charged during an authorized period of deferment or forbearance or capitalize the unpaid accrued interest by having it added to the loan principal at the end of the deferment or forbearance period, as provided under the Act. If I choose to capitalize unpaid accrued interest, the total cost of my loan will increase.
The Taxpayer Relief Act of 1997 may allow me to claim a federal income tax deduction for interest payments I make on Direct Loans for the first 60 months (whether consecutive or not) that such loans are in repayment. The deduction applies to interest payments I make on or after January 1, 1998. For further information, I may refer to the Internal Revenue Service (IRS) Publication 970, which is available at http://www.irs.ustreas.gov/.
Federal Direct Consolidation Loan
Borrower's Rights and Responsibilities
The William D. Ford Federal Direct Loan (Direct Loan) Program includes the following Direct Loans:
Federal Direct Stafford/Ford Loans (Direct Subsidized Loans)
Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Loans)
Federal Direct PLUS Loans (Direct PLUS Loans)
Federal Direct Consolidation Loans (Direct Consolidation Loans)
The Direct Loan Program is authorized by Title IV, Part D, of the Higher Education Act of 1965, as amended (the Act).
A Direct Loan is made by the United States Government and is administered by the U.S. Department of Education (ED). ED's Direct Loan Servicing Center will manage, answer questions about, and collect my loan. I will be provided with the address and telephone number of the Direct Loan Servicing Center when my Direct Consolidation Loan is made.
1. Change of Status. Under federal law, I must notify the Direct Loan Servicing Center, in writing, if any of the following events occurs before my loan is repaid:
I change my address
I change my name (for example, maiden name to married name)
I change my employer or my employer's address or telephone number changes
I have any other change in status that would affect my loan (for example, the loss of eligibility for an unemployment deferment by obtaining a job)
If I am still in school, I must notify my school's financial aid office if any of the following events takes place:
I reduce my enrollment status to less than half time
I withdraw from school
I stop attending classes
I fail to enroll for any term
I have a change in my expected graduation date
I change my name, local address, or permanent address
2. Loan Identification Numbers. My Direct Consolidation Loan may have up to three individual loan identification numbers. These numbers will be determined and assigned by ED depending on the loan(s) that I have chosen to consolidate. Even if three separate consolidation loan identification numbers are assigned by ED, I have only one Direct Consolidation Loan and will receive only one bill.
2a. The following subsidized loans will be consolidated under one loan identification number:
Subsidized Federal Stafford Loans
Guaranteed Student Loans (GSL)
Federal Insured Student Loans (FISL)
Federal Direct Stafford/Ford Loans
Federal Direct Subsidized Consolidation Loans
Federal Perkins Loans
National Direct Student Loans (NDSL)
National Defense Student Loans (NDSL)
Subsidized Federal Consolidation Loans
2b. The following unsubsidized loans will be consolidated under one loan identification number:
Unsubsidized Federal Stafford Loans (including Non-Subsidized Stafford Loans made prior to 10/1/92)
Federal Supplemental Loans for Students (SLS)
Unsubsidized Federal Consolidation Loans
Federal Direct Unsubsidized Consolidation Loans
Federal Direct Unsubsidized Stafford/Ford Loans
Auxiliary Loans to Assist Students (ALAS)
Health Professions Student Loans (HPSL)
Health Education Assistance Loans (HEAL)
Nursing Student Loans (NSL)
Loans for Disadvantaged Students (LDS)
2c. The following parent PLUS loans (unsubsidized) will be consolidated under one loan identification number:
Federal PLUS Loans
Parent Loans for Undergraduate Students (PLUS)
Federal Direct PLUS Loans
Federal Direct PLUS Consolidation Loans
3. Interest Rate. It is my responsibility to pay interest on my loan. Interest will be calculated according to the applicable formulas provided for by the Act and/or ED's regulations. The interest rate that applies to my loan will be included in a letter that I will receive from the Direct Loan Servicing Center when my Direct Consolidation Loan is made.
The interest rate on my Direct Consolidation Loan will be based on the weighted average of the interest rates on the loans being consolidated, rounded to the nearest higher one-eighth of one percent, but shall not exceed 8.25%. This is a fixed interest rate, which means that the rate will remain the same throughout the life of the loan.
4. Interest Charges. Interest will be charged from the date my Direct Consolidation Loan is made. However, for all of the loans that I consolidate from Item 2a, ED will not charge interest on my Direct Consolidation Loan during in-school, grace, and deferment periods. For all of the loans that I consolidate from Items 2b and 2c, ED will charge interest on my Direct Consolidation Loan during all periods.
ED will charge interest on my Direct Consolidation Loan during a forbearance period.
I must pay any interest charged during an authorized period of deferment or forbearance or capitalize the unpaid accrued interest by having it added to the loan principal at the end of the deferment or forbearance period, as provided under the Act. If I choose to capitalize unpaid accrued interest, the total cost of my loan will increase.
The Taxpayer Relief Act of 1997 may allow me to claim a federal income tax deduction for interest payments I make on Direct Loans for the first 60 months (whether consecutive or not) that such loans are in repayment. The deduction applies to interest payments I make on or after January 1, 1998. For further information, I may refer to the Internal Revenue Service (IRS) Publication 970,
The William D. Ford Federal Direct Loan (Direct Loan) Program includes the following Direct Loans:
Federal Direct Stafford/Ford Loans (Direct Subsidized Loans)
Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Loans)
Federal Direct PLUS Loans (Direct PLUS Loans)
Federal Direct Consolidation Loans (Direct Consolidation Loans)
The Direct Loan Program is authorized by Title IV, Part D, of the Higher Education Act of 1965, as amended (the Act).
A Direct Loan is made by the United States Government and is administered by the U.S. Department of Education (ED). ED's Direct Loan Servicing Center will manage, answer questions about, and collect my loan. I will be provided with the address and telephone number of the Direct Loan Servicing Center when my Direct Consolidation Loan is made.
1. Change of Status. Under federal law, I must notify the Direct Loan Servicing Center, in writing, if any of the following events occurs before my loan is repaid:
I change my address
I change my name (for example, maiden name to married name)
I change my employer or my employer's address or telephone number changes
I have any other change in status that would affect my loan (for example, the loss of eligibility for an unemployment deferment by obtaining a job)
If I am still in school, I must notify my school's financial aid office if any of the following events takes place:
I reduce my enrollment status to less than half time
I withdraw from school
I stop attending classes
I fail to enroll for any term
I have a change in my expected graduation date
I change my name, local address, or permanent address
2. Loan Identification Numbers. My Direct Consolidation Loan may have up to three individual loan identification numbers. These numbers will be determined and assigned by ED depending on the loan(s) that I have chosen to consolidate. Even if three separate consolidation loan identification numbers are assigned by ED, I have only one Direct Consolidation Loan and will receive only one bill.
2a. The following subsidized loans will be consolidated under one loan identification number:
Subsidized Federal Stafford Loans
Guaranteed Student Loans (GSL)
Federal Insured Student Loans (FISL)
Federal Direct Stafford/Ford Loans
Federal Direct Subsidized Consolidation Loans
Federal Perkins Loans
National Direct Student Loans (NDSL)
National Defense Student Loans (NDSL)
Subsidized Federal Consolidation Loans
2b. The following unsubsidized loans will be consolidated under one loan identification number:
Unsubsidized Federal Stafford Loans (including Non-Subsidized Stafford Loans made prior to 10/1/92)
Federal Supplemental Loans for Students (SLS)
Unsubsidized Federal Consolidation Loans
Federal Direct Unsubsidized Consolidation Loans
Federal Direct Unsubsidized Stafford/Ford Loans
Auxiliary Loans to Assist Students (ALAS)
Health Professions Student Loans (HPSL)
Health Education Assistance Loans (HEAL)
Nursing Student Loans (NSL)
Loans for Disadvantaged Students (LDS)
2c. The following parent PLUS loans (unsubsidized) will be consolidated under one loan identification number:
Federal PLUS Loans
Parent Loans for Undergraduate Students (PLUS)
Federal Direct PLUS Loans
Federal Direct PLUS Consolidation Loans
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