Consolidating student loans faq
However, it is very dangerous to consolidate federal loans into a private consolidation loan.You will lose your rights under the federal loan programs once you choose to consolidate with a private lender.Parent PLUS loans may be discharged if the student for whom the parent received the loan dies.Also, the death of both parents with a PLUS loan (assuming both took out the loan) is grounds for the “death discharge.” The death of only one of the two obligated parents does not cancel a PLUS loan.You can also request forbearance so that collection stops while you are gathering information for your application. A., yes, if you have been determined to be unemployable due to a service-connected condition.However, the government says that it has the right to continue Social Security offsets while the application is pending. For Social Security, in some cases yes as of July 1, 2013.Borrowers should generally maximize their federal loan options before resorting to private loans. Banks and lenders – not Congress – set the interest rates, loan limits, terms, and conditions of private loans. In addition, in most cases, borrowers must have a high school diploma or equivalency.
Private loans are not subsidized by the government, and therefore are not regulated as closely.Some private lenders will use their discretion and agree to discharge loans when a borrower or co-borrower dies.Yes, if you are eligible for the public service loan forgiveness program.Many of the terms and conditions for the FFEL and Direct loan programs are the same.However there are some differences in repayment options.