The federal government has announced that it plans to eliminate student loan interest payments for the remaining graduates who have not yet enrolled in college. This is due to a provision in the Higher Education Act that allows the government to forgive certain portions of federal loans. These include private loans such as Stafford loans, Federal Perkins loans, and Consolidation loans.
The government’s intention is to consolidate consolidation loans into one single loan. To qualify, students need to be enrolled in college, complete a certain amount of coursework in their major, and have a FICO score of at least 666. Students will need to know what does qualify them for forgiveness, because there are some people who will not qualify for this loan forgiveness.
Great Lakes and Nelnet, both part of the same organization and which together service nearly thirteen million student loan borrowers nationwide, can no longer service Federal Perkins loans after Dec. 20th. Federal Perkins loans are offered through a government agency and must be used by the borrower. Federal Perkins loans are different from other federal loans in that they are given through a government agency, while other private loans must be paid back from your own savings. For this reason, the government provides students with the ability to consolidate these loans.
If you are seeking federal consolidation loans, you should consider looking at consolidation programs offered by non-government lenders. Non-government lenders offer many benefits, including better interest rates and lower monthly payments. The government provides consolidation loans to help students, but private companies also offer student debt assistance.
Many student borrowers are struggling financially because of the high cost of tuition and other costs associated with attending college. Many are struggling to keep up with payments on their student loans, let alone afford their living expenses. By consolidating all of your federal loans into one, you will save a lot of money over time. You may even save money in interest and penalties, if you work with a reputable consolidation company.
If you do qualify for loan forgiveness, the government offers many different benefits. One of them is that you can continue to pay back your loans until you complete your education, with some programs extending the grace periods beyond twelve to twenty years.
Once you graduate, your student loans will no longer be your responsibility. You can then begin working towards your new career and pay off your new loans.
Your best bet to learn more about your options is to contact your local bank or credit union, or talk to an attorney. If you are still interested in learning more about student debt relief, you can look online. There are several sources of information on the web that offer you free advice, but you may want to speak to a professional financial advisor.
When looking for a student debt consolidation program, look for one that offers the lowest interest rates, the longest period of time to pay the loan, and the most favorable loan term. The terms of your loan repayment may differ according to the type of loan you have.
There are many loans available for student debt relief and they include private loans, Stafford Loans, Direct Loan, Perkins Loans, and Federal Family Education Loan (FFELDC) funding. Federal Perkins loans are made available to any student who is enrolled at least half time in a public school and attending a participating four-year university. Direct Loan funding is provided to any eligible student attending a two-year university, community college, or technical school.
The easiest way to find a private lender to consolidate your student loans is to contact a bank or other lending institution and ask for a referral. This is the same process that you would use for other types of personal loans. A private lender can offer many options for student debt relief. They may refer you to a federal government agency that can find you the right option for your circumstances.
The best approach for finding private lenders is to check with the Better Business Bureau (BBB) or the Department of Education to make sure that the lender you choose has not had any claims against it. Also, make sure that you read the terms and conditions and loan terms carefully. Remember that there are limits to the federal government’s loan forgiveness programs and private lenders have to meet those qualifications as well.