Advantages of a Direct Consolidation Loan

Direct Consolidation Loans allow borrowers to combine one or more of their federal education loans into a new loan that offers several advantages.

A creditor and a monthly payment
With only a creditor and a monthly billing, it is easier than ever for borrowers to manage their debts. Borrowers have just one creditor, the EU Ministry of Education, for all loans included in a Direct Consolidation Loan.

Flexible repayment options
Borrowers can choose between four different plans to repay its Direct Consolidation Loan, including an Income Contingent Repayment Plan. These plans are designed to be flexible to meet the different needs of borrowers and changing. With a Direct Consolidation Loan, borrowers may switch reimbursement plans at any time.

No minimum or maximum loan amounts or rates
There is no minimum amount required to qualify for a Direct Consolidation Loan! Moreover, the consolidation is free.

Deferment options varied
Borrowers with Direct Consolidation Loans eligible for renewal deferral benefits. If borrowers have exhausted your deferment options on their current federal education loans, a Direct Consolidation Loan may renew many of these options postponement. Moreover, borrowers may be eligible for the postponement additional options, if they have a balance in a FFEL Program loans made before July 1, 1993, when they obtain their first direct lending.

Reduced monthly payments
The Direct Consolidation Loan May relieve the tension on a borrower's budget by reducing the borrower's overall monthly payment. The minimum monthly payment on a Direct Consolidation Loan may be lower than the combined payments charged to a borrower Federal education loans.

Retention grant benefits
There are two (2) possible portions of a Direct Consolidation Loan: Subsidized and Unsubsidized. Borrowers retain their benefits subsidies on loans that are consolidated in the subsidized part of a Direct Consolidation Loan.