Problems with consolidating student loans
Or if you combine your Parent PLUS loans with your own federal student loans, you may suddenly become ineligible for some of the most beneficial student loan forgiveness and repayment programs.These errors, when made by the borrower, can be extremely difficult or impossible to undo.Or the consolidation servicer may send the “check” to the wrong company.I’ve even seen situations where the consolidation servicer – leaving the borrower with a duplicate loan balance once the consolidation loan has been issued.When your consolidation loan is about to be issued, you should receive a “Summary Letter” that provides a table with all of the loans that are being included in the consolidation. All loans that you want to be included in the consolidation should be listed there.And none of the loans that you want to be (such as a Parent PLUS loan or Perkins loan) should be in that list.
It’s not uncommon for the loan balance to be a bit higher than expected.It really shouldn’t be this difficult for student loan borrowers, but sometimes, it is.If you’re thinking about consolidating your federal student loans through the federal Direct consolidation program, there are potentially many benefits: streamlined repayment (one combined loan, one servicer, one monthly bill); simplified interest (if you are converting variable-rate loans to the fixed, weighted-average interest rate provided by the Direct consolidation program); default resolution if you are including defaulted federal student loans in the consolidation; and conversion to the Direct loan program through which you can access some additional student loan forgiveness and repayment programs.All products are presented without warranty." Graduating from college comes with the acknowledgment of great achievement — and, if you’re like 70% of graduates, a burden on your back in the form of student loan debt.
Recommended Student Loan Consolidation Companies The average college grad leaves school with ,000 worth of debt. The Simple strives to keep its information accurate and up to date.