Confused about reform and consolidation? | 06.17.10

Posted in Consolidation, Loan Consolidation By Evan Jacobs

If you’ve heard the word about the reform currently in progress across the country, you probably are aware of the end of the FFEL program and exclusive federal consolidation returning to the Department of Education. If not, read this page on upcoming changes to get acclimated.

One question we get a lot is, “If FFEL is ending, where do we apply for consolidation now?” The answer is Direct Loan Servicing of the US Department of Education. You can apply for consolidation here: Loan Consolidation Center

Make sure to have all your account numbers and payoff balances ready to make the process quick and error-free as possible. Good luck!


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8 Responses to “Confused about reform and consolidation?”

  1. Heather says on January 3, 2011 at 2:53 pm:

    The link for borrower services is not working on the Loan Consolidation Center page listed above. Not sure if this is because of the webside or because of my computer. The school services and the loan holder services links are both working.

    Reply To This Comment
  2. Jason says on October 23, 2010 at 1:39 am:

    Hey I am looking for “Consolidate Student Loans” please can you help me where should get get..

    Reply To This Comment
  3. sheri hoffman says on September 28, 2010 at 6:49 am:

    Does it pay to consolidate federal loans and private loans?

    Reply To This Comment
    • Evan Jacobs says on September 28, 2010 at 9:10 am:

      It can, depending on how much your monthly payments amount to and your monthly income.

      If you have several of each type of loan and your monthly payment is over 20% of your income, I definitely would recommend considering consolidation. You can't consolidate private and federal loans together, but you can at least reduce yourself to 2 payments each month and potentially cut your monthly payment too, at the cost of more interest.

      There are definitely pros and cons, but if you are struggling to make ends meet, consolidation can help out massively on the monthly payments.

      Reply To This Comment
  4. Dani says on July 14, 2010 at 11:30 am:

    Can you consolidate while under deferment ?

    Reply To This Comment
    • Evan Jacobs says on July 14, 2010 at 8:00 pm:

      Yes, but it will end the deferment period. You can re-apply for deferment once the consolidation is complete though.

      Reply To This Comment

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