One of these alternatives is for borrowers to request an FFELP consolidation loan by contacting one of their FFELP loan holders.
The letter includes a fact sheet that describes the differences between the Direct Loan and FFELP consolidation programs.
The Department has requested that the FFELP program assist these borrowers who contact us regarding the possibility of consolidating their loans into the FFEL program.
The Department has authorized FFELP lenders to grant an administrative forbearance to borrowers who contact them, in writing, by phone, or in person, and state that they are experiencing a hardship because they are waiting, but unable, to consolidate their loan/s into the Federal Direct Consolidation Loan program.
To complete Entrance Counseling as an undergraduate student or graduate/professional student, you will need: Financial Awareness Counseling provides tools and information to help you understand your financial aid and assist you in managing your finances. Department of Education has informed you that you have an adverse credit history and you have: Exit counseling provides important information you need to prepare to repay your federal student loan(s).
I have a Direct Consolidation Loan and want to go back to school on at least a half-time basis.
This is especially true if your outstanding loans are a combination of loans that include the Perkins Loans, Direct Loans and FFELP Loans.
The thing with having a direct consolidation loan is that all of your current outstanding loans would be repaid and in its place; a new loan would be created, one that would have a single repayment period as well as a single combined interest rate thus making it easier for you to handle.For delinquent borrowers, the forbearance can be granted retroactive to the beginning of the delinquency period.The end date of this specific forbearance is the date the loan is consolidated.Am I entitled to the same deferments that I had with my Direct subsidized and Direct unsubsidized loans?Consolidation loans have most of the same deferments that Direct subsidized and Direct unsubsidized loans have.You lose a few deferment options upon consolidation, but the ones most frequently used by borrowers (the in-school deferment, unemployment deferment, and economic hardship deferment) are still available for a Consolidation loan.