Debt Consolidation Components
You can include the following types of debt in our Debt Management Program:
Debt consolidation programs are usually just a big loan that pays off other smaller loans. They can be very beneficial to borrowers, but these programs also have their pitfalls.
When to Use Debt Consolidation Programs
Debt consolidation programs are good for a few situations. If you are paying several different loans off, your life may be easier if you consolidate everything into one loan. You’ll only get one monthly statement and make one payment.
Also, you’ll find that your monthly debt payments decrease if you use a debt consolidation program that stretches your payments out over a longer period of time. This means that you’ll pay out less each month and you can free up some cash.
A tempting (and sometimes successful) strategy is to use a debt consolidation program to manage various high-rate revolving debts. As an example, you might have numerous credit card balances with high interest rates. With a debt consolidation program, you might be able to get a handle on that debt and lower the interest rate (APR) that you’re paying. In general, credit cards have higher rates and secured loans (such as home equity loans) have lower rates.
Things to Remember About Debt Consolidation Programs
Using debt consolidation programs can help you or hurt you. You should be very aware that all these programs do is shift your debt – a debt consolidation program does not eliminate your debt. You owe the money and will have to pay it back sooner or later.
One pitfall of a debt consolidation program is that you may feel like you have less outstanding debt. For example, you’ll notice that your credit cards once again have generous amounts of available credit. If you use this credit you’ll only dig yourself into a deeper hole.
You should also be aware that you may end up paying more total interest if you use a debt consolidation loan. If you stretch out your payments over a longer period of time, it is possible that your total interest cost will be higher. Of course, it may be worth it to you if you can more easily manage your cash flow today.
Finally, remember what you’re risking by using one of these programs. Often, you’ll use a home equity loan or a home equity line of credit to consolidate your debt. The consequences of falling off the payment schedule can include the loss of your home in some cases. Credit card companies can’t take your home. However, if you pledge your home as collateral in a debt consolidation program then your house is fair game for a foreclosure.
How to Find the Best Debt Consolidation Programs
There are a variety of choices, and you should shop around to find one that fits your needs. If you need some ideas on where to start, try this plan:
Soil Consolidation Analysis
We present a typical problem in soil consolidation analysis, in which we compute the distribution of excess pore pressure and the displacement under the applied load for a simple three-layered soil model.
The above animation shows the dissipation of excess pore pressure and the (magnified) displacements of the soil skeleton. In the middle layer (sand), the permeability is high, so the pore pressure is constant. In the upper and lower layers (clay), the permeability is low, so the pore pressure is non-uniform and signficant time is needed for the pore pressure to dissipate. The soil model is shown below in greater detail.
The load is applied instantaneously and is held constant for a period of 295 days.
We use the porous medium formulation of ADINA in the analysis. In this formulation, the soil skeleton is assumed to be fully saturated with water. The unknowns are the displacements and the pore pressure. The water flows through the soil skeleton in accordance with Darcy's law.
The permeabilities of each layer are specified. The surface is modeled with a drained boundary condition (zero pore pressure) and the bottom of the model is modeled with an undrained boundary condition (no pore fluid flow through the boundary).
The soil skeleton is modeled with linear elastic material models. (Other geotechnical material models, such as the Mohr-Coulomb, Cam-clay or Drucker-Prager models, can also be used.)
Although this problem is most efficiently solved with plane strain 2-D elements, we use 3-D elements as a demonstration. 27-node elements are used, with pore pressures defined only at the corner nodes. The analysis is quasi-static and linear.
For many individuals with mounting debt, unfortunately the best way to get out of the red is to declare personal bankruptcy. But does this strategy actually offer relief from your student loan debt?
The average college student loan debt is over $19,000.
Fixed cost payments usually consist of mortgage, car, insurance, utilities, and in this case student loan payments. Then there’s also the added burden of about $10,000 in credit card debt—on average—per American household.
Add all of these financial debts together and given the right combination of debt load in contrast to income it’s not hard to imagine exactly how your financial situation could be pushed over the edge, into bankruptcy territory.
It would be nice to just wipe the slate clean concerning all of your debt, including student loans, wouldn’t it?
The truth is, declaring bankruptcy is not a solution to paying off your student loans. Why? In only rare circumstances are student loan debts cancelled, or discharged, due to bankruptcy. A bankruptcy court must decide that your financial situation would bring about undue hardship if you were to continue to be held responsible for your student loans. Guess what? This is not a common ruling. In order for this to happen you’d likely have to prove a long-term physical disability that would exclude you from being able to ever find full-time work.
Student Loans are rarely forgiven since they are guaranteed government funds dispersed with low interest to all kinds of people with no credit history. You don't expect the IRS to forgive you on all taxes that are owed, so expect the same treatment with your student loan.
Most student loan debt is secured debt borrowed from the federal government that cannot be erased. Unsecured student loan debt from private and non-profit organizations is also not erased by bankruptcy.
**Is there is a difference between filing a Chapter 13 and Chapter 7 bankruptcy when it comes to trying to get your student loans discharged? No. Doesn’t matter which type of bankruptcy for which you file, your student loan debt is likely to remain intact.
There is one way you may be able to take care of your student loan debt. In some cases a bankruptcy court may decide to discharge your unsecured debt in order to get your student loans paid off, first.
How this works:
Student Loan debt is often put into a separate category by the bankruptcy court to give it priority. Debt that receives the lowest priority in payback is usually credit card debt. For example, the court may decide, in a Chapter 13 bankruptcy, which is a reorganization of your debt, to allocate most of your monthly payments to your student loans and away from unsecured debt such as credit card debt.
Remember, declaring bankruptcy is a serious financial decision. If you are having problems principally with student loan repayment you should first contact your lender. Explore other options, first, such as student loan forbearance, loan deferment, and loan consolidation programs that are designed specifically for borrowers with student loan repayment problems. But make sure you manage repayment problems before you default on a loan; at that point your financial problems will be compounded.
Student loan lenders provide a variety of repayment programs that offer you assistance with various financial circumstances. The ultimate goal: to make sure you have flexible choices when it comes to student loan repayment. No one benefits when you default on loans.
Delay or postpone student loan payments under certain circumstances in one of two ways: loan deferment or forbearance.
During forbearance you are responsible for paying the loan interest that accrues during the period of delay. Forbearance may also allow you to make smaller loan payments for a certain period of time, as well. During deferment the interest on any subsidized loans is not accrued.
Popular reasons to pursue forbearance include:
Remember: Lenders are quite willing to work with you if you are having financial difficulties making student loan payments. There are a couple of other options besides loan forbearance: you might also evaluate your eligibility for loan consolidation or loan deferment, or change the type of loan repayment plan you initially chose.
**Tip: Federal school loan laws have changed since June 1, 1993, many that involved student loan repayment options. Always contact your lender or student aid officer for the most up to date information.
Besides general economic hardship, student loan forbearance on your federal Stafford Loans may be mandatory in a few situations. Always contact the program or lender directly, ask for appropriate forms and fill them out completely.
Under the federal loan program you have plenty of options for loan deferment or forbearance, but what about private student loans? Most private and non-profit organizations provide forbearance options if you qualify. Lenders differ widely, so expect a variation of criteria for private loan forbearance. Allow yourself plenty of time for applications to be processed and remember: until you’ve been approved you must still make regularly scheduled loan payments.
If you are a parent and are paying on a PLUS Loan while a child is in college and you experience a financial problem with loan repayment you may be able to apply for a loan forbearance. Check with your lender for details.
As you can see forbearance rules are more subjective than those for deferment. The best advice is to go directly to your lender and ask about your eligibility for loan forbearance. Always pursue alternative repayment plans and avoid loan default at all costs.Ever wish your student loans would be cancelled? Loan forgiveness may come in one of two forms: dire economic hardship or for grads in various fields of study.
The most popular and common loan forgiveness programs are aimed at a select group of college graduates—teachers, nurses, and law students—that may choose to work in high need areas, such as a low income school, a medically underserved healthcare facility, or as a public interest attorney working with disadvantaged individuals.
How loan forgiveness for professionals works:
Loan forgiveness programs for teachers, nurses and lawyers typically feature full or partial loan repayment or forgiveness of federal student loans in exchange for a certain number of years service in a facility or professional capacity like one of those mentioned above.
By far the most popular and widespread loan forgiveness programs are those that seek teachers. Student teachers, are you willing to work in one of these situations?
Believe it or not a wide range of sources administer loan forgiveness programs or loan repayment programs for teachers. Here are a couple examples:
Check out our resource page on Loans for Teachers and find out much more about teacher loan forgiveness and repayment.
The national nursing shortage fuels the drive for well-trained nurses. Again the federal government, as well as specific state governments, has developed appealing nursing loan forgiveness and repayment programs. RNs, LPNs, nurses with advanced degrees, and especially nurse faculty are all in high demand.
Visit our resource page on Nursing Loans for more information on nursing specific loan forgiveness and repayment. Don’t leave money on the table.
Public interest lawyers make little money to speak of. But this field of work is critical for assisting disadvantaged individuals. Loan forgiveness programs for young lawyers lag far behind the programs for nurses and teachers.
Law students, your best strategy: find out if your law school sponsors any loan forgiveness or loan repayment programs for new attorneys.
In rare situations a bankruptcy court may rule that your financial situation is dire enough to expunge your outstanding student loans, including federal student loans and private loans. The fact is your student loans are an obligation regardless of bankruptcy, which makes this such an unusual occurrence.
The Nursing Student Loan (NSL) program is available if you are a U.S. citizen, U.S. national, or permanent resident who is enrolled at least half-time as an undergraduate or a graduate student in a nursing degree program. You may be awarded up to $2,500 per academic year, depending on your need. This annual limit increases to $4,000 during your final two years of the nursing program. The aggregate NSL maximum is $13,000. The interest rate is 5 percent. Interest does not accrue during periods of deferment. For consideration, you must report parental data on the FAFSA, even if you have independent student status.
Each and every time you accept an NSL, you will be mailed a paper promissory note and loan disclosure form that you are required to complete and return to Student Financial Collections before loan funds can be disbursed to you.
You are also required to attend an exit interview when you:
A Stafford Loan, which can help to finance your way through a college or university, comes in two forms:
A subsidized Stafford Loan, which you can receive based upon your specific financial aid. When a Stafford loan is subsidized, you are not required to pay any interest on the loan while you attend school. The federal government subsidizes the interest accrued on your account while you attend school and does not charge you interest until you finish school.
An unsubsidized Stafford Loan, which you do not receive based upon your own specific financial aid. Rather, you can receive this type of loan but must pay interest on the loan even as you are still taking classes and enrolled in school.
Often time, college and university students find that Stafford loans will be dispensed to them both as subsidized and unsubsidized loans, meaning that part of the loan will be subsidized and part of it will not. As they move through college, this means that they are paying interest on the loans, or simply allowing the interest to build up over time.
Stafford loans consolidations can help you to combine the two types of loans after college into one low monthly payment that makes it easier and quicker for you to pay off your college loans. You have the ability to find a loan consolidation company, who will then work with you to take all of your Stafford loans, both subsidized and unsubsidized, and place them into one central loan that can then be paid off over time.
How exactly will this help to save you time and money? For starters, you will only be paying interest on one loan, rather than two, and by consolidating your loans, you can often achieve more favorable interest rates on your debt. In the end, this will allow you to save time, money, and frustration that comes with paying off loans over long periods of time.
Federal Direct loan consolidation is a practical repayment tool that enables you to combine all of your federal Direct student loans into a single loan. In addition to reducing your monthly payment, federal Direct consolidation provides flexible repayment plans, interest rate reductions, and deferment and forbearance options.
How do you know if you have federal Direct student loans? Below is a detailed list of the different types of federal Direct student loans.
Apply now for a free information packet, or call toll free 1-877-328-1565 to speak with one of our student loan consolidation counselors. Or you can read some frequently asked questions about Federal Direct Loan consolidation.
One of the key benefits of Direct loan consolidation is payment relief. By combining all of your direct student loans into one consolidated loan, you can lengthen your repayment term from the standard 10 years to up to 30 years, depending on the amount of your education debts. With a lower monthly payment, you'll have more money available to meet other living expenses, including car payments, housing expenses, and career-related necessities. Because there are no penalties for overpayment, you can make larger payments and reduce your repayment term when it becomes affordable.
Direct Consolidation Loans allow borrowers to combine one or more of their Federal education loans into a new loan that offers several advantages.
One Lender and One Monthly Payment
With only one lender and one monthly bill, it is easier than ever for borrowers to manage their debt. Borrowers have only one lender, the U.S. Department of Education, for all loans included in a Direct Consolidation Loan.
Flexible Repayment Options
Borrowers can choose from four different plans to repay their Direct Consolidation Loan, including an Income Contingent Repayment Plan. These plans are designed to be flexible to meet the different and changing needs of borrowers. With a Direct Consolidation Loan, borrowers can switch repayment plans at anytime.
No Minimum or Maximum Loan Amounts or Fees
There is no minimum amount required to qualify for a Direct Consolidation Loan! In addition, consolidation is free.
Varied Deferment Options
Borrowers with Direct Consolidation Loans may qualify for renewed deferment benefits. If borrowers have exhausted the deferment options on their current Federal education loans, a Direct Consolidation Loan may renew many of those deferment options. In addition, borrowers may be eligible for additional deferment options if they have an outstanding balance on a FFEL Program loan made before July 1, 1993, when they obtain their first Direct Loan.
Reduced Monthly Payments
A Direct Consolidation Loan may ease the strain on a borrower's budget by lowering the borrower's overall monthly payment. The minimum monthly payment on a Direct Consolidation Loan may be lower than the combined payments charged on a borrower's Federal education loans.
Retention of Subsidy Benefits
There are two (2) possible portions to a Direct Consolidation Loan: Subsidized and Unsubsidized. Borrowers retain their subsidy benefits on loans that are consolidated into the subsidized portion of a Direct Consolidation Loan.
2. What are the differences between FFEL Consolidation vs. Direct Consolidation?
Borrowers are encouraged to check with their existing loan holders or servicers to find out about consolidation options available to them. Some differences between programs may include:
3. Who is eligible for a Direct Consolidation Loan?
To qualify for Direct Consolidation Loans, borrowers must have at least one Direct Loan or Federal Family Education Loan (FFEL) that is in grace, repayment, deferment, or default status. Loans that are in an in-school status cannot be included in a Direct Consolidation Loan.
Borrowers can consolidate most defaulted education loans, if they make satisfactory repayment arrangements with their current loan holder(s) 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 Consolidation Loan 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 or intend to apply for loan forgiveness under the Public Service Loan Forgiveness Program.
Borrowers who have only a Direct Consolidation Loan cannot consolidate again unless they include an additional loan.
NOTE: The Direct Loan Servicing Center has information on the Public Service Loan Forgiveness Program.
4. Can I obtain a Direct Consolidation Loan if I don't have any Direct Loans?
Yes, borrowers without any Direct Loans may be eligible for a Direct Consolidation Loan 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 or intend to apply for loan forgiveness under the Public Service Loan Forgiveness Program.
NOTE: The Direct Loan Servicing Center has information on the Public Loan Service Forgiveness Program.
5. Can I consolidate a PLUS Loan?
Yes, PLUS Loans can be consolidated into a Direct Consolidation Loan.
6. Can I consolidate a Perkins Loan?
Yes, it is possible to consolidate Perkins Loans into a Direct Consolidation Loan if borrowers include at least one Direct Loan or Federal Family Education Loan (FFEL) in their request. Perkins Loans cannot be included in a Direct Consolidation Loan by themselves. Furthermore, all Perkins Loans consolidated into the Direct Loan Program will be included in the unsubsidized portion of the Direct Consolidation Loan.Borrowers should carefully weigh the advantages and disadvantages of including a Perkins Loan in a consolidation loan. While the borrowers gain the benefits of the Direct Consolidation Loan Program, they also lose the benefits associated with the Perkins Loan Program.
We recommend that you consider the following points prior to making a decision:
The Direct Consolidation Loan Program offers standard, graduated, extended and income contingent repayment plans which may lower monthly payments.
NOTE: Lower payments and extended repayment terms can increase the overall finance charges incurred over the life of loan.7. Can I consolidate health professions loans?
Yes, With a Direct Consolidation Loan, borrowers can include certain health profession loans sponsored through the U.S. Department of Health and Human Services with other Federal education loans in their Direct Consolidation Loan. Borrowers must include at least one Direct Loan or Federal Family Education Loan (FFEL) Program loan in the Direct Consolidation Loan.
Eligible Health Professions Loans
The Advantages
Direct Consolidation Loans offer many advantages to borrowers of health professions loans. These include:
When deciding to consolidate a health professions loans, consider the following advantages:
Issues to Consider
Before applying for a Direct Consolidation Loan, consider the following points:
8. Can I consolidate my loans if I am enrolled in school?
Yes and No. Effective for Direct Consolidation Loan applications received on or after July 1, 2006, borrowers who are enrolled in school cannot consolidate loans that are in an in-school status. These are loans that have not yet entered or used up the 6-month grace period entitlement.
Borrowers still can consolidate loans that are in grace, repayment or deferment
Borrowers can add loans to an existing consolidation for up to 180 days after the Direct Consolidation Loan was first disbursed. If more than 180 days has passed, borrowers can apply for a new Direct Consolidation Loan. The new consolidation loan can include the original Direct Consolidation loan and must include another eligible outstanding Federal education loan.
Example: A borrower who has education loans stopped attending school for a year and the loans used up the 6-month grace period and entered repayment. The borrower returned to school and obtained a new loan. While enrolled, the borrower applies for a Direct Consolidation Loan. The Direct Consolidation Loan can include the first group of loans the borrower received, but not the newly received loans. Once the borrower leaves school again he or she can add these new loans to the existing consolidation loan or submit a new Direct Loan Consolidation application to combine the original consolidation loan and the other remaining loans.
9. Can I consolidate an existing consolidation loan?
Yes, under three conditions:
Borrowers who have only a Direct Consolidation Loan cannot consolidate again unless they include an additional loan.
NOTE: The Direct Loan Servicing Center has information on the Public Service Loan Forgiveness Program.
10. Can I consolidate my loans that are in grace?
Yes, Borrowers who consolidate loans that are in grace may receive a lower interest rate on their Direct Consolidation Loans if they are consolidating variable rate loans. However, once grace status loans are consolidated borrowers lose any remaining grace period. Borrowers receive their first bills within 60 days after the new Direct Consolidation Loan is made.
The timing in which an application is submitted is important:
11. What special conditions apply if I am in repayment and just consolidating now?
Borrowers in repayment who want to consolidate their Federal education loans should continue making payments until their loan holder notifies them that their loans are paid in full.
12. Can I consolidate jointly with my spouse?
No, Effective July, 1 2006 a married couple may no longer obtain a Direct Consolidation Loan as joint borrowers.
13. Can I Consolidate a Defaulted Loan?
Generally, Federal education loan(s) in default may be consolidated in a Direct Consolidation Loan if borrowers:
OR
If, before applying for consolidation, borrowers who want to completely clear the default notation from their credit records, they may want to consider another option: loan rehabilitation. Borrowers should contact their loan holders to obtain more information about this option.
Borrowers cannot consolidate defaulted loans under these conditions:
Note: Borrowers with defaulted FFEL or Direct Loan Program loans may be liable for collection costs incurred to collect the loans. If the holder of the defaulted loan, which may be either the U.S. Department of Education or a guaranty agency, retains a collection agency to collect defaulted loans, charges imposed by the collection agency may be added to the amount borrowers owe. This means that the amount of the Direct Consolidation Loan may include collection costs of up to 18.5% of the principal and interest outstanding on the defaulted loan.
For defaulted Perkins Loans and health professions loans, collection costs may equal as much as the amount owed at the time the defaulted loan is paid off through consolidation.
14. Can I delay processing of my consolidation application?
Yes, you can delay the processing of your Direct Consolidation Loan until closer to the end of your grace period end date if any of the loans you want to consolidate are in a grace period.
Normally, when you consolidate your existing loan(s) into a new Direct Consolidation Loan, you will be required to start repayment of your new loan immediately. However, if any loan you want to consolidate is still in a grace period, you can delay entering repayment on your new Direct Consolidation Loan until closer to your grace period end date by entering your expected grace period end date (month and year) in the space provided on the application. We will start processing your application about 45 days before the expected grace period end date that you provide. If you leave the expected grace period end date blank on your consolidation application, your Direct Consolidation Loan will enter repayment immediately.
You can select a date up to nine (9) months into the future. If your grace end date is more than 9 months away, wait to submit your application.
15. Should I rehabilitate before consolidating my defaulted loan?
Rehabilitation or Consolidation?
There are many benefits to rehabilitating a defaulted loan before consolidation. If you consolidate a defaulted loan without rehabilitating it , your credit record continues to show a default status on the loan. This is true even after the consolidation loan pays off the defaulted loan in full.
However, if you rehabilitate a defaulted loan before consolidating it , the loan holder will update your credit record to no longer reflect the default status of the rehabilitated loan(s).
Keep in mind that if you default on your loan, you are liable for any collection costs incurred to collect the loan. If you pay off the defaulted loan by taking out a Consolidation Loan, the amount you borrow must be enough to pay off your defaulted loan, including principal, interest, and collection costs. This means that the amount of the new loan may need to be up to 18.5% larger than the principal and interest outstanding on your defaulted loan.
Both rehabilitation and consolidation will reinstate your eligibility for additional Federal student aid under Title IV of the Higher Education Act (Pell Grants, FFEL and Direct Loans etc.)
16. What are the consequences of defaulting?
Borrowers who fail to make a payment on time are considered delinquent on their Direct Consolidation Loans. Borrowers who do not make payments for 270 days are in default. Defaulting has severe and long-lasting consequences, as follows:
It is important that borrowers with Direct Consolidation Loans stay in touch with the Direct Loan Servicing Center. Default can occur when borrowers fail to keep the Direct Loan Servicing Center up to date on address and name changes, causing billing statements to go astray. In addition, the Direct Loan Servicing Center can offer alternatives when borrowers have trouble making monthly payments. Borrowers may apply for a deferment or forbearance, or change repayment plans.
17. What are the repayment plans?
When repaying a Direct Consolidation Loan, you may choose from as many as four repayment plans with various term selections.
| You will pay a fixed amount each month until your loan(s) are paid in full. Your monthly payments will be at least $50 for up to 10 to 30 years, based on your total education indebtedness. |
| Your minimum payment amount will be at least equal to the amount of interest accrued monthly. Your payments start out low, and then increase every two years for up to 10 to 30 years, based on your total education indebtedness |
| To be eligible, your Direct Loan balance must be greater than $30,000 and you will have up to 25 years to repay your loan(s). You have two payment options:
|
| Monthly payments that are based on a borrower's annual income, Direct Loan balance and family size, and are spread over a term of up to 25 years. |
If you consolidate more than one loan type (subsidized, unsubsidized and PLUS) you will have one Direct Consolidation Loan with up to two parts: Direct Subsidized and Direct Unsubsidized (which includes PLUS) Consolidation Loans. Even with up to two parts of each Direct Consolidation Loan, you make only one payment each month.
If (1) you have not chosen a repayment plan, (2) you are not required to pay using ICR, and (3) we determine that you currently have other active Direct Loans, we may assign your new Direct Consolidation Loan(s) to the same repayment plan as your active loan(s). If you do not currently have active
Direct Loan(s), we may assign your new Direct Consolidation Loan(s) to the Consolidation Standard Repayment Plan. You can change at a later date to other plans for which you may be eligible.
Under this plan, you will pay a fixed amount of at least $50 each month for up to 10 to 30 years, based on your total education indebtedness. This plan may result in lower total interest paid when compared to repayment under one of the graduated plans.(See Example A and the Standard and Graduated Repayment Plan Repayment Periods Table)
Under this plan, you will pay a minimum payment amount at least equal to the amount of interest accrued monthly for up to 10 to 30 years, based on your total education indebtedness. Your payments start out low, and then increase every two years. Generally, the amount you will repay over the term of your loan will be higher under the Graduated Repayment Plan than under the Standard Repayment Plan. This plan may be beneficial if your income is low now but is likely to steadily increase. (See Example B and the Standard and Graduated Repayment Plan Repayment Periods Table)
To qualify for this plan, your Direct Loan balance (your new Direct Consolidation Loan Amount plus other Direct Loans) must be greater than $30,000. Your plan options are:
Fixed Monthly Payment Option - Under this plan, you will pay a fixed amount of at least $50 each month for up to 25 years. Repayment under this plan will result in lower total interest paid when compared to graduated plans with similar terms. (See Example C and the Extended Repayment Plan Repayment Periods Table)
Graduated Monthly Payment Option - Under this plan, you will pay a minimum payment amount of at least $50 or the amount of interest accrued monthly, whichever is greater, for up to 25 years. Your payments start out low and then increase every two years. Repayment under this plan may provide lower initial monthly payments, although the total interest paid may be greater when compared to plans with similar terms with fixed payments. This plan may be beneficial if your income is low now but is likely to steadily increase. (See Example D and the Extended Repayment Plan Repayment Periods Table)
**Extended repayment terms are available to Direct Loan borrowers with no outstanding principal or interest balances as of October 7, 1998 and with more than $30,000 in Direct Loans.
Income Contingent Repayment (ICR) Plan
The ICR Plan gives borrowers the flexibility to meet their obligations without causing them financial hardship. Monthly payments are based on borrowers’ annual Adjusted Gross Incomes (AGI), loan balance and family sizes. Income is obtained from the Internal Revenue Service (IRS) or from an Alternative Documentation of Income Form (discussed below) submitted by the borrowers. (See Example E)
To participate in the ICR Plan, borrowers (and if married, their spouse) must sign the Income Contingent Repayment Plan Consent to Disclosure of Tax Information Form. This authorizes the IRS to release borrowers' income information to the Department of Education to calculate monthly payments. Monthly payments are adjusted annually to reflect inflation, family size and income.
Monthly payment amounts for some borrowers may not be enough to cover the interest accruing on their loans. This situation is referred to as negative amortization. In such cases, the unpaid interest is capitalized and added to the principal balance once per year. The amount added to the principal balance will never exceed 10 percent of the original Direct Consolidation Loan amount. Once this capitalization limit has been reached, interest continues to accrue but is not capitalized. The capitalization limit does not apply to interest that accrues during deferment or forbearance.
Under this plan, it is possible a borrower will not make payments large enough to pay off his or her loans in 25 years. If loans are not fully repaid after 25 years of repayment, any unpaid amount will be forgiven. The maximum 25-year repayment period may include prior periods of repayment under certain other repayment plans, and certain periods of economic hardship deferment. The forgiven amount may be considered taxable income.
Alternative Documentation of Income
Alternative documentation of income is required for Direct Consolidation Loan borrowers if their underlying loans were in the first or second year of repayment when they were consolidated. Alternative documentation includes pay stubs, canceled checks, or, if these are unavailable, signed statements explaining income resources.
18. How is the amount of my payment calculated under the ICR plan?
The ICR Plan is designed to keep payments affordable. Generally, borrowers pay the lesser of:
Under the ICR plan, the monthly payment is $0 for borrowers with family incomes that are less than or equal to the U.S. Department of Health and Human Services poverty level for their family size. Borrowers whose calculated monthly payment is greater than $0 but less than $5 are required to make a $5 monthly payment. Other borrowers must pay the calculated monthly payment.
Until the Department receives income information from the IRS or alternative documentation of income, borrowers' monthly payments are equal to the interest that accrues each month. If they are unable to make the interest-only payments, borrowers may request a forbearance until the first scheduled Income Contingent Repayment (ICR) plan payment is due.
The monthly payment in Example E is calculated as follows:
Step 1:
Step 2:
Step 3:
Step 4:
NOTE: This example is based on the 2007 income percentage factors and U.S. Department of Health and Human Services (HHS) poverty level guidelines.
19. Can I change repayment plans?
Yes. Most borrowers may change repayment plans at any time. However, borrowers who are required to repay under the ICR plan must make three consecutive monthly payments before changing to another plan. There is no limit to the number of times borrowers may change plans.
20. How long does it take to consolidate my loans once I submit my application?
The consolidation process generally takes 60-90 days. Using our online Web application can reduce the amount of time it takes to consolidate a borrower's loan.
21. When can I expect my first bill?
Borrowers will receive bills from the Direct Loan Servicing Center within 60 days of the first disbursement of their Direct Consolidation Loan.
Borrowers receive monthly billing statements from the Direct Loan Servicing Center, unless they enroll in the Electronic Debit Account (EDA).
Borrowers receive a 0.25 percent discount on their interest rate for as long as they continue to make payments using EDA.
Borrowers must keep the Direct Loan Servicing Center informed of changes of address and to their names. Borrowers are responsible for making payments on time regardless of whether they receive billing statements. Borrowers should send payments to:
U.S. Department of Education
Direct Loan Payment Center
P.O. Box 530260
Atlanta, GA 30353-0260
Borrowers may prepay all or part of the unpaid balance on any Direct Loan at any time, without an early repayment penalty. If a borrower makes a payment that exceeds the required monthly payment, the prepayment will be applied first to any charges or collection costs, then to outstanding interest, and last to principal. However, if a borrower's account has no outstanding interest, the prepayment is applied entirely to principal. If the prepayment is twice the borrower's monthly payment, the next payment due date is advanced unless the borrower specifies otherwise. The borrower will be notified of a revised due date.
24. How does Total Education Indebtedness effect the repayment term of my Direct Consolidation Loan?
If you elect to repay your Direct Consolidation Loan under either the Standard or Graduated Repayment Plans, your repayment term is determined based on your consolidation loan amount and other eligible education loans that are not part of your Direct Consolidation Loan as long as you provided information about those loans on your application. Here are examples of how Total Education Indebtedness effects the repayment term for your Direct Consolidation Loan.
Your Existing Loans:
| Loan A | $ 2,500 |
| Loan B | $ 6,000 |
| Loan C | $ 2,500 |
| Loan D | $ 7,500 |
| Loan E | $ 7,500 |
| Loan F | $13,000 |
| Total Outstanding Amount | $39,000 |
Examples 1 and 2 assume that you reported all your outstanding education loans on your consolidation application.
| You Consolidate | Your Direct Consolidation Loan Amount | Your Other Eligible Education Loans | Your Total Education Indebtedness | Your Direct Consolidation Loan Repayment Term (approx.) | |
| Example 1 | |||||
| Loans A and B | $8,500 | $30,500 | $17,000 | 15 Years | |
| Example 2 | |||||
| Loans A, B, C, D, and E | $26,000 | $13,000 | $39,000 | 20 Years | |
In Example 1 you consolidated less that one-half of your eligible outstanding loans. As a result, we base your repayment term on your Direct Consolidation Loan amount plus other eligible indebtedness only in an amount equal to your new Direct Consolidation Loan:
In Example 2 you consolidated more than one-half of your eligible outstanding loans so the calculation of Total Education Indebtedness includes all of your other eligible education loans. The result is a longer repayment term than in Example 1.
Finally, Example 3 illustrates the impact on your repayment term if you did not report all of your outstanding education loans on your Direct Consolidation Loan application. Your repayment plan term is shorter than in Example 1.
| You Consolidate | Your Direct Consolidation Loan Amount | Your Other Eligible Education Loans | Your Total Education Indebtedness | Your Direct Consolidation Loan Repayment Term (approx.) | |
| Example 3 | |||||
| Loans A and B | $8,500 | $0 | $8,500 | 11 Years | |
Remember that the longer your repayment term the lower your monthly payment will be. However, this usually means that the total interest paid during repayment will be higher. Only you can decide what plan is best for you. And, you can change plans later if your plan no longer suits your needs. Use our convenient online calculator to estimate your number of monthly payments, monthly payment amounts and total interest to be paid for as many different scenarios as you like.
Student Loan Consolidation Program: What it does
The student loan consolidation program allows borrowers to combine outstanding student loans. For example, if a student has three separate government student loans, the student can consolidate them into one single loan. Technically, all three of those loans will be considered paid in full and a new loan will be started in their place.
Student Loan Consolidation Program: How it helps
Consolidating loans through the student loan consolidation program is beneficial in three ways. First, it's more convenient. Students with multiple loans also have to make multiple payments every month. That means there's more paperwork and due dates to keep track of and a better chance that one of them won't get paid. With consolidation, there's only one loan payment due every month instead of two, three, etc. That's usually easier for most students and graduates to manage.Asbestos exposure symptoms are a "red flag" that should send an individual straight to a physician — preferably a physician who is familiar with asbestos diseases (e.g., asbestosis, lung cancer, and mesothelioma). The sooner that an asbestos disease is identified in a patient, the sooner that his or her treatment will begin. This is particularly important for cancers caused by asbestos exposure.
Although asbestos exposure symptoms are somewhat 'vague' in that they could be signs of many possible medical conditions, an individual who is experiencing any of the following symptoms should tell his or her doctor about it and discuss the possibility of asbestos exposure:
There are a number of factors that contribute to how severe an individual's asbestos exposure symptoms will be, including:
If you suspect that you're experiencing asbestos exposure symptoms, schedule an appointment with your doctor immediately. Once your asbestos exposure symptoms are confirmed, it is in your best interest to contact an asbestos attorney who will be able to evaluate the source of your exposure and fight to recover compensation for the damages you incurred, including past, present and future medical costs and emotional pain and suffering.
Malignant mesothelioma is caused by asbestos exposure. There is a latency period of 20 to 50 years or more between initial exposure and development of the disease with the average being between 35 and 40 years. Rare instances have been documented when the interval was less than 20 years.
The incidence of mesothelioma rises with the intensity and duration of exposure to asbestos. However, there are numerous cases of mesothelioma among people with very little occupational exposure or even household exposure. There are cases of people getting mesothelioma 30 or 40 years after a summer job working construction, and cases of housewives or children being exposed from work clothing. Many people being diagnosed with mesothelioma now were exposed in the Navy many years ago, often unknowingly. Many school buildings were also built with asbestos.
Despite what many believe, asbestos is not banned in the United States. Some countries have moved to ban asbestos but even if it is banned from new product sales, asbestos remains a problem because the material is around in so many buildings. The World Health Orgnization estimates that worldwide, 125 million people are exposed to asbestos on their jobs every year, and 90,000 die from asbestos diseases.
Materials Containing Asbestos
Most insulation materials before the mid-1970s contained asbestos. Many other construction materials also contained asbestos. Some of the most common products were:
Trades
The following tradesmen could have worked around asbestos:
As a first step in diagnosing the disease, the doctor may order an x-ray of the chest or abdomen or a CT (or CAT) scan or MRI may be performed. Although mesothelioma typically cannot be seen on an x-ray, the tumor often causes a pleural effusion, or fluid collection between the lung and chest wall. This abnormal finding is associated with shortness of breath and warrants clinical follow up. Lung function tests may also be completed.
The doctor may look inside the chest cavity with a special instrument called a thoracoscope. A cut will be made through the chest wall and the thoracoscope will be put into the chest between two ribs. This test, called thoracoscopy, is usually done in the hospital. Before the test, the patient will be given a local anesthetic (a drug that causes a loss of feeling for a short period of time). Some pressure may be felt, but usually there is no pain.
The doctor may also look inside the abdomen (peritoneoscopy) with a special tool called a peritoneoscope. The peritoneoscope is put into an opening made in the abdomen. This test is also usually done in the hospital. Before the test is done, a local anesthetic will be given.
If tissue that is not normal is found, the doctor will need to cut out a small piece and have it reviewed under a microscope to see if there are any cancer cells. This is called a biopsy. Biopsies are usually done during the thoracoscopy or peritoneoscopy.
Diagnosing mesothelioma is very difficult, and cases of mesothelioma misdiagnosed are unfortunately not uncommon. It is important to share your case history of work experience (especially in shipyards and at construction sites) and asbestos exposure potential with your physicians if you feel mesothelioma is a risk. Asbestos fibres can also be carried into the home on clothing, inadvertently exposing the deadly fibres, and the risk of mesothelioma, to family members.
A mesothelioma diagnosis is serious, but treatments are available. The chance of recovery (prognosis) depends on the size of the cancer, where the cancer is, how far the cancer has spread, how the cancer cells look under the microscope, how the cancer responds to treatment, and the patient's age. As with most types of cancer, early diagnosis is an excellent first step in fighting the disease.
The Federal Consolidation Loan is designed to assist you with managing your student loan debt. It allows you to combine multiple student loans together, thus having one loan payment and loan holder. Your consolidating lender merges your existing loans into a new single loan called a Federal Consolidation Loan.
Here's a chart showing your savings with private student loan consolidation:
Federal student loan consolidation is a fixed-rate refinancing program that combines all of your existing federal student loans into one new loan. Consolidation is a great tool for managing your finances - providing immediate payment relief and long term benefits. With our fast and convenient eSignature, your application will be complete in just a few minutes.
One of the key benefits of consolidating your federal school loans is payment relief. By combining all of your student loans into one consolidated loan, you can lengthen your repayment term from the standard 10 years to up to 30 years, depending on the amount of your education debts. With a lower monthly payment, you'll have more money available to meet other living expenses, including car payments, housing expenses, and career-related necessities. Because there are no penalties for overpayment, you can make larger payments and reduce your repayment term when it becomes affordable. Learn more about how student loan consolidation works in this step-by-step tutorial.
Get one-on-one personalized customer service. Our loan counselors will educate you on the benefits of federal student loan consolidation and help you determine if consolidating is the right choice. We will explain the consolidation process and the repayment options that are available to you.
Federal loan consolidation can include Federal Stafford Loan consolidation, PLUS Loan consolidation, Direct Loan consolidation as well as Perkins Loans, HEAL Loans and all Federal FFELP and Direct Loans taken to pay for your education. Private student loan consolidation is different - You will lose your federal loan benefits if you consolidate your federal loans into a private loan consolidation.
Get one-on-one personalized customer service. Our loan counselors will educate you on the benefits of federal student loan consolidation and help you determine if consolidating is the right choice. We will explain the consolidation process and the repayment options that are available to you.
Attention, federal student loan borrowers! Right now, NextStudent can help you substantially lower your monthly student loan payments and put loads of extra cash in your pocket with the Federal Student Loan Consolidation Program.» Learn more.
Federal student loan rates are low right now, but consolidating your student loans with NextStudent could help you lower your student loan payments even more.
And when you consolidate your student loans, you could get more time—up to 20 more years—to repay.
How much can you save? Use our consolidation loan calculator to find out.
What are you waiting for? Apply now!
Anyone with an eligible federal student loan or federal parent loan can consolidate with the NextStudent Federal Consolidation Program. There are no credit checks, you don’t need a co-signer, and you don't need to know the details of your current student loan portfolio. Just complete the simple four-step online application with Electronic Signature, and you could be on your way to lower payments each month.
Find out more about your student loan consolidation options, or just start a student loan consolidation application to find out how much you can save!
Whether you have one or multiple federal education loans, with the Federal Consolidation Loan program, you could significantly lower your monthly payments and get up to 30 years to repay your parent or student loans. Apply Online... now with Electronic Signature!
If you’ve already consolidated your federal student loans but still have private student loans you want to consolidate, you’re in luck. With the new NextStudent Private Consolidation Loan, you can consolidate all your eligible private student loans at record-low rates that could save you money.
How much can student loan consolidation help you? Use our consolidation loan calculators to find out.
Debt settlement offers a no-loan alternative to debt consolidation programs. If you’re struggling to meet monthly payments on your credit card debt or on other debts besides your student loans, a debt settlement program could offer you the debt relief you’re looking for.
A debt settlement program can give you affordable monthly program payments and could help you settle your credit cards, medical bills, and other eligible debts within 12 to 36 months for up to 50 percent less than what you owe.*
Settle all your eligible unsecured debts:
Thank you for your interest in Sallie Mae, the nation’s leading provider of saving- and paying-for-college programs. Severe legislative cuts made by Congress made federal student loan consolidation uneconomical. This, combined with the credit market deterioration, has caused us to suspend participation in the federal consolidation loan program.
Sallie Mae is committed to the federal student loan program and offers a variety of federal student loans and repayment options. If you would like to learn more about the various repayment options that can help you manage your monthly payment amount, please call a repayment specialist at (866) 457-6918.
Sallie Mae’s mission is to expand access to college and to ensure no student is denied the opportunity to pursue their dreams. This decision allows us to direct our resources on maximizing college access for more students and parents.
Sallie Mae reserves the right to modify or discontinue loan programs at any time without notice.
A PLUS Loan consolidation is a practical, debt management tool that enables you to bundle all of the federal loans you received to finance your child's college education into a single loan.
In addition to simplifying record keeping and check-writing chores, PLUS Loan consolidation can significantly reduce your monthly payment burden. The lower payment means you'll have more money available to meet other household expenses, including car payments, childcare, and career-related necessities.
For a step by step guide to the consolidation process, click here!
Consolidation can significantly reduce your monthly payment burden. Click here to learn why this is important! PLUS Loan Consolidation allows you to stretch your repayment period from the standard 10 years to up to 30 years, depending on the amount of your education debts. The lower payment means you'll have more money available to meet other household expenses, including car payments, childcare, and career-related necessities.