DIRECT STUDENT LOAN

With the cost of higher education increasing more and more in the past years, the time you graduate from college is no longer just the moment when you plan your career, it has become the moment that your debts start to catch up with you.
To diminish the stress of repaying the student loans you acquired in college it is advisable that you resort to student loan debt consolidation. Whatever types of student loans you may have acquired in time, if they are not consolidated they can have a negative impact on your credit history after graduation, rendering you unable to acquire different kinds of credit like car loans, credit cards or mortgages. To prevent that, your best option is student loan debt consolidation.
The consolidation can be applied to both federal student loan debts as well as private student loan debts, but it is preferable that they are consolidated separately, as these types of loans have different characteristics. The most important difference between the two types of student loans is that the interest on federal student loans is tax deductible, whereas the private student loans offer no benefits. Also, in special cases, a federal student loan can be repaid by joining the army or by doing community service. In these cases the student pays no money, and offers his services in exchange for the entire amount.
How to consolidate your student loan debt – Student loan debt consolidation takes place, most of the times, during the grace period of a loan. This applies to both federal student loan debts as well as private student loan debts. The lower in-school rates of interest are used to calculate an average fixed interest rate that will be applied to your consolidated student loan debts.
A student loan debt consolidation program offers various flexible repayment schedules with lower monthly payments, very attractive rates of interest and only one lender that the student loan debt is returned to. Student loan debt consolidation does not require any additional fees or charges, no credit checks or co-signers, the companies that consolidate student debts only require that you, as a student, have loaned at least the minimum amount available.
How to consolidate your federal student loans – Using federal student loan consolidation you can build up all your federal student loans into just one loan with a single lender and a single schedule of repayment. The advantages do not stop here, as there are no charges, prepayment penalties or fees required after the consolidation of your loans. Also, the consolidation of loans can be made by you personally or by your parents, and it does not require the presence of any co-signers.
Through the federal student loan consolidation program all your debts are acquired by a commercial lender. At this point your account balance with the credit bureaus is zero, and all your debts are rolled into just one debt that you owe to a single commercial lender. All you have to do is sign a new promissory note that contains the details of your current rate of interest and repayment plan, and your federal student loans are consolidated. However, in order to qualify for this consolidation you must be able to prove that you made at least three full and on time monthly payments.
With the federal loan rates of interest at their lowest, this is an especially good time to consolidate your federal student loan debt, as the interest rate for the consolidated loan would be even lower, and fixed for the whole duration of the repayment schedule. And, since financial advisors say that the interest rates have been so low for so long that there is no place for them to go but up, this is probably the best time for a long time to come to consolidate your debts.
A wisely chosen student loan debt consolidation program will help lower your after graduation debt and will have a positive impact on your credit history.

I’m paying off a lot of credit card debt and currently have my student loans in a deferral status. But the big monthly payments will start up again at the end of this year.
Aside from trying to “drop off the radar screen” or looking for a much better-paying job that would quickly burn me out, I’m curious if anybody has any leads on this matter.
Thanks!
PS: Don’t recommend declaring bankruptcy because student loan debt is exempt from that.

A student loan debt consolidation loan allows you to combine your federal student loans into a single loan with one monthly payment. The repayments of a student loan debt consolidation loan can be significantly lower than the payment required under the standard 10-year repayment option. Under the Federal Family Education Loan (FFEL) Program, banks, secondary markets, credit unions, and other lenders provide the student loan debt consolidation loan. Under the William D. Ford Federal Direct Loan (Direct Loan) Program, the federal government provides the student loan debt consolidation loan.

Most federal education loans are eligible for inclusion in a student loan debt consolidation loan, including subsidized and unsubsidized Direct and FFEL Stafford Loans, SLS, Federal Perkins Loans, Federal Nursing Loans, and Health Education Assistance Loans. However, private education loans are not eligible for inclusion in a student loan debt consolidation loan.

To find out which loans can be included in a student loan debt consolidation loan contact the Direct Loan Origination Center’s Consolidation Department if you’re applying for a direct student loan debt consolidation loan. Contact a participating FFEL lender if you’re applying for a FFEL student loan debt consolidation loan.

It is worth noting that you are still eligible for a student loan debt consolidation loan after you graduate, leave school, or drop below half-time enrollment. You can also get a student loan debt consolidation loan while you’re in school. You must, however, be attending at least half time and have at least one Direct Loan or FFEL in an ‘in-school period’ which generally means that you have been continuously enrolled at least half time since the loan was disbursed. There are a number of conditions that need to be met for you to qualify for a student loan debt consolidation loan, especially if you are delinquent or in default and your loan holder will be able to give you all the necessary information.

If the same holder holds all the FFEL loans you want to consolidate, you must obtain the student loan debt consolidation loan from that holder, unless you haven’t been able to get a loan with income-sensitive repayment terms that are acceptable to you. To be eligible for a William D. Ford direct student loan debt consolidation loan, you must have either a direct Stafford subsidized or unsubsidized loan that will be included in the student loan debt consolidation loan or have at least one Federal Family Education Loan (FFEL) program Stafford subsidized or unsubsidized loan.

Get out of debt – debt help and relief guide.

Getting an education is hard work and financing that education can be daunting if you don’t know how to go about it. Even if you have scholarships and grants (money that is given to you and doesn’t have to be repaid), there are still expenses that you may not be able to cover. You may need a student loan.
Sometimes you can borrow the money for your education from the school you’re attending, but more often, you’ll have to choose a lender. The federal government is by far the least expensive of these! There are two kinds of federal loans (formerly known as Guaranteed Student Loans), the Federal Family Education Loan (FFEL) and the Federal Direct Student Loan (FDSL).
When you obtain a FFEL, you borrow the funds you need from a credit union, bank or other financial institution of your choice and the government guarantees the loan. If you renege on your student loan, the federal government is obligated to repay it. A FDSL loan is borrowed from the feds through the Department of Education.
If you choose to borrow from a bank or credit union, you will be applying for a character (or signature) loan. This type of loan is made when the bank is so certain that the borrower will repay the loan that no collateral is required, merely a signature. You will need either an excellent credit background or be a customer of long standing to obtain a signature loan. The interest rates will be higher than a federal student loan but still much lower than the usual consumer loan.
Generally, you will not have to repay a student loan until after graduation. But what if you can’t repay it? Your options are severely limited in such a case. Before 1998, people were sometimes able to discharge their student loans by declaring bankruptcy but this is no longer allowed.
Permanent disability or death are acceptable reasons for not paying your student loan. If the school you’re attending closes before you graduate, you may be able to discharge your federal student loan or challenge it.
Closings generally are more common in trade and business schools, as they are smaller institutions and have less financial backing from their alumni. Stricter laws enacted since 1998 have made it extremely difficult to prove great enough financial hardship to have student loans forgiven. If family illness or disability creates hardship in repaying your federal loan, it may be deferred but rarely forgiven.
There are many who believe that any debt is bad debt but borrowing for your education is widely considered good debt. By investing in your education, you will be able to enter a career field that affords you a better standard of living and later, better years of retirement. By borrowing the least amount possible and making a solid plan for repaying the loan, this good debt will be well worth it.
Be sure to investigate grants before you borrow money for your education. A grant is a financial gift that does not have to be repaid. Most grants are relatively small amounts but can take care of expenses such as books and other learning materials. The federal government, schools and private organizations are good places to start investigating grants.