Few common questions regarding the consolidation process, eligibility criteria etc have been addressed in this article. As we have already dealt with the advantages of consolidation, we will not delve in to that topic.
- What is the difference between FFEL consolidation and Direct Consolidation?
Differences if any must be checked with the office to which the consolidation application is being sent. If at all there are any differences, they will be mainly in the domain of the number of loans that you can consolidate, minimum amount for consolidation, requirement of documents for each type of loan, variation in the electronic debit system of repayment and repayment plans.
- Eligibility criteria for a direct consolidation loan?
In order to qualify for consolidation, the borrower must be a holder of either the FFEL of the Direct Loan and at least one of these loans must be either under the grace period, deferred or have a default status. Loans under current repayment status may also be consolidated. In school loans cannot be consolidated under the direct loan consolidation. Borrowers having only direct loans cannot consolidate unless they include another loan along with the direct loan.
- Consolidation of PLUS loans into direct consolidation loans?
Yes they can be consolidated along with the direct or the FFEL loans.
4. Can Health Profession Loans too be consolidated with a direct Loan?
- Yes, Health profession loans too are consolidated with Direct Loans if they have been sponsored under the US department of Health and Human Services. Some eligible health loans are
- Nursing Student Loans (NSL)
- Health Professions Student Loans (HPSL)
- Health Education Assistance Loans (HEAL)
- Loans for Disadvantaged Students (LDS)
- Health Education Assistance Loans (HEAL)
5. Can already consolidated loans be further consolidated?
Yes. Only under the condition that they are included with another direct loan. By doing so, you will be eligible for a lower interest rate and the advantages include lesser monthly payments, reduced repayment option and longer time to pay back the borrowed amount.
Keep looking at this section for further answers for common queries.
