Pitt Community College will continue offering federal loans to students despite a law that allows schools to opt out. Twenty of the state's 58 community colleges have dropped out of the federal direct loan program, according to the latest information ... PCC to continue offering federal loans
If you are like most of the graduates today, you might have carried some loans over the years. You might think you can handle the loans but the reality is that it is not as easy as you thought. Although you have diverted a big chunk of money for the monthly payment, you still can't help to wonder when you can actually be debt free.
For starter, direct student loan is the loan that is offered to you without involving third party and its consolidation program is very similar to normal student loan consolidation where you consolidate multiple student loans with multiple interest rates into one consolidated student loan. The consolidator will pay off all your outstanding debts and start a new financial plan with you.
When that is done, you can enjoy lower interest rate in the monthly payment and you can deal solely with this agency for the rest of your loan period.
You simply can't imagine the hassle involve when dealing with multiple companies. Besides, you can also improve your credit score when you have combined your student loans. And when you have a good score, you will have stronger negotiation power for other loans in the future.By the way, do you know that you can get some of your money back when you pay on time? There are a lot of consolidators who will pay you back (around 1%) when you have made on time payment within a certain period. The period is determined by the agency and it is only logic that you choose the agency that offers the shortest period but with the highest pay back.
And for your information, there are five repayment plans you can choose from for direct student loan consolidation and they are the Standard, Extended, Graduated, Income Contingent and Income Based Repayment Plan (which will start on July 1, 2009).
As you might have guessed, each of these plans does come with their own pros and cons.
So, before you decide on which loan type is best for you, make sure that you have done your research before you sign on the document.Lastly, you need to be aware that you are actually paying more for your loan because of the accumulated interest (even though you are enjoying low rate for low monthly payment) over long consolidation period. So, if you have no financial difficulty or you are close to settle your loans, please reconsider about consolidating your student loans.
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