Benefits of Direct Student Loan Consolidation

Direct student loans are low interest loans offered by the Department of Education in the United States for the students with the aim of helping them to pay the cost of education beyond high school. On the other hand, direct student loan consolidation is a practical means of payment and allows students to combine all the loans of their studies into one single loan. Is it really necessary for students to consolidate federal loans? Let's see how far the truth of this statement.One of the key benefits of direct loan consolidation is payment relief. By combining all your direct study loans into one consolidated loan, you are able to lengthen your repayment term from the standard of 10 years to an extended duration up to 30 years. The repayment duration is based on the total amount of your educational debts. With the extended repayment period, you are able to reduce your monthly payment up to 53%. In other words, you are able to make use of the money to meet your living expenses which include your housing expenses, transportation and other career related necessities. If you are currently unemployed or being retrenched, direct loan consolidation could be a big assistance for you.

Besides, if you consolidate federal loans during the grace period, you are able to reduce your interest rate up to 0.6%. In this case, you are able to save a large sum of cost in the long term, aren't you? After consolidating the loans into a single loan, your finances will be simplified to become one payment per month. It ensures that you won't miss any repayment.

The direct loan consolidation also provides flexibility to the students. After they start working for a certain period of time, they can be more affordable to pay off their debt. In this case, they are allowed to make larger payments and reduce their repayment term without any penalty for overpayment.
After knowing all the key benefits, you should act fast to go for direct student debt consolidation if you are currently having a few federal study loans.

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