Aquil Agility News Blog

Federal Loan Consolidation is nothing but consolidating your existing federal student loans and bringing the repayment under one umbrella to significantly ease your monthly burden. Loan consolidation is offered with many advantages including flexible repayment options, renewed deferments and smaller repayment amounts depending on the time period.

Direct Loan Consolidation pays the loans that you want to consolidate and provides a fresh new loan with easy repayment options such as standard, graduated, extended and income based. As a borrower, it is necessary to have at least one FFEL or Federal Family Education Loan or one Direct Loan that is in the default, deferment, repayment or grace period status. Usually, loans that are in-school are not considered for consolidation.

Before opting for consolidation on defaulted education loans, it is necessary to first rehabilitate the loan with the current lender. Alternately you can agree under the Income Contingent Repayment Plan to repay the direct loan consolidation amount.

If you do not currently run a direct loan, it is possible to include an FFEL loan for which you were unable to obtain from a FFEL consolidation lender a federal consolidation loan. You will also be eligible if you have not been able to obtain a Federal consolidation loan due to certain repayment terms that are income sensitive. You can also opt for direct loan consolidation if you are planning on applying for loan forgiveness under the Public Service Loan Forgiveness Program.

Unless an additional loan is included, it is not possible for borrowers to consolidate only with the direct loan consolidation. You can obtain valuable information on eligibility criteria and on Public Service Loan Forgiveness Program from the direct loans servicing center.

Consolidate your existing student loans depending on your eligibility to enjoy benefits and make repayments convenient and simple.