In studying your student loan consolidation information option, you need to check the William D Ford Direct Loan Program.
The Direct Loan Program began about 15 years ago and began using credible American fashion to eliminate middlemen, instead of allowing banks, credit unions and other private companies to lend money to students and their parents, the federal government borrowed dollars directly.
Direct plans overlap in many areas, another alternative called FFELP (Federal Home Education Loan Program), which is an acronym for programs that work through private lenders because they replicate FFEL in several ways The plan, which aims to lenders aiming for what they want because they both provide Stafford and PLUS loans, direct loans have similar qualification criteria, they insist on similar demand-based guidelines, or on non-demand-based The services have similar credit check requirements and provide similar plans based on similar criteria that raise a natural question. How do you pick them?
Part of the decision involves picking out which type of two types of customer service staff to use to answer any questions. In many cases, private lenders will be more flexible and helpful, while governments will be more bureaucratic or indifferent, and many can read Online forums may be a better way to obtain information on what is most suitable for the individual situation. With the development of social networks, it becomes easier to obtain a variety of opinions and opinions, many of which are not based on objective criteria of personal taste. Reading these posts may immediately allow a person to decide which party they like.
There are more specific differences between the two products, because since the FFELP loan is funded and serviced by a private financial institution, and your signed promissory note may not be the private financial institution that you repay the loan, this is a The basic approach for the lender to re-sell loans to other companies, mortgage companies have been doing so, you may have painstakingly discovered lenders and their favorite services, you may have decided to exceed the interest rate and repayment period more like their customers Service, and then for example finding that the loan has been sold to another company, you may now repay the loan to your designated company, but in the case of a direct loan, because the federal government is the lender, the loan is not sold to any third party.
The biggest difference for many people is the interest rate between the two, and the fees and repayment periods may be different, especially the interest rates for Stafford and PLUS loans are fixed, but private lenders are otherwise There is some flexibility.
Lenders may or may not be charged for origin and insurance (according to federal law, specific assessments are 3% and 1% respectively, and these laws themselves will change in the coming years). Although fees still exist, lenders may agree to absorb them to obtain your business, but they may modify the date on which interest charges are calculated, or extend the grace period or extend the repayment time.
The only way to find out what is available is to shop, just like other types of loans, and calculate the total cost of the loan. When considering any student loan consolidation, this information must be kept in hand.
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Orignal From: Student Loan Consolidation Information - What is the William D Ford Direct Loan Program
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