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Your Student Loan Options

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While the federal government has provided a number of options for students to get out of their student loan debt, one option that seems to be reasonable among them is the loan consolidation option. While this is not forgiveness program exactly, it still saves money for the borrower and will help with the students who are in huge student loan debt.

Which loans are eligible?

In this case, almost all federal student loans will be eligible for the direct consolidation loan program. This will apply for the following programs.

  • HPSL: Health Professions Student Loans
  • NSL: Federal Nursing Student Loans
  • Federal and Federal Direct Stafford Loans
  • SLS: Supplementary Loans for Students
  • Federal Consolidation Loans
  • Federal Direct Consolidation Loans
  • Federal and Federal Direct PLUS Loans
  • LDS: Loans for Disadvantaged Students
  • FISL: Federal Insured Students Loans
  • Federal Perkins Loans – both subsidized as well as unsubsidized loans

In any case, if the loan the student acquired is not mentioned in the above list, there are still chances that the loan might be eligible. However, it has to be checked with the loan service provider for confirmation.

Is Direct Loan Necessary?

While students can go with the direct loan option is definitely is not a prerequisite here. If the student as at least one of the federal approved student loans, then that will be enough to qualify for the direct consolidation option. Having a direct loan is not compulsory to get into the direct consolidation loan program.

What about Private Loans?

Many people think that federal loans and private loans go hand in hand. This is not the case. In the case of the direct consolidation loans, only the federal loans will be taken into account. That means that the loan should be classified under one of the federal government student loan program. Any loan which comes under the category of the private loan will not be considered for the direct consolidation loan option. There is still the option of consolidating the private student loans which happen to be processed in a different way.

What about PLUS loans?

PLUS loans can be taken into the Direct Consolidation option. But in this case, if the Parent PLUS loan should be put under this category then the borrower will not be eligible for the Income Based Repayment plan. This is not a wise choice as it may end up increasing the amounts of monthly payments. So when a borrower wants to go with this option, it is better to check with the loan service provider on all the possible options and the results of consolidating the federal loans.

What about Perkins Loans?

The Perkins Loans can be consolidated into the Direct Consolidation Loan program. In this case, there is a requirement where there should be at least one Direct Loan or at least one FFEL loan on request. This is because an individual Perkins loan cannot be put in the Direct Consolidation loan option. The Perkins loan put in Direct consolidation loan will be in the unsubsidized category which will take away all the benefits of the Perkins loan.


What are your thoughts?

External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by Platinum Debt Services. Links are provided for informational purposes and should not be viewed as an endorsement.

Platinum Debt Services refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. Platinum Debt Services always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Third Party Brand Mentions: No brands or products mentioned are affiliated with Platinum Debt Services, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.

Platinum Debt Services was founded by a young group of professionals who recognized that they student loan crisis was partly due to that fact that borrowers do not know their options. Our main goal is to educate and empower consumers by providing up to date new programs and information.

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