Lenders and guaranty agencies are not involved in the process.FFELs are guaranteed loans made by private lenders.One of the myths of consolidation is that it makes your debt less expensive by lowering your interest rate.Historically, that may have been accurate, since consolidation was often used as a way to lock in a low interest rate on variable-rate loans, says financial aid expert Mark Kantrowitz.When you apply, you can choose one of the listed federal loan servicers—including Great Lakes—to complete the consolidation and then service your Direct Consolidation loan. For loans consolidated and serviced by Great Lakes, you'll receive your first communications from us within one-to-two business days after submitting your online application.You'll also be able to view your application's progress on your account.
As of July 1, 2010, the FFEL program was eliminated.
ñ extended repayment plan: graduates and undergraduates with more than thirty thousand dollars in loans can extend the time period for repayment to twenty, twenty-five or even thirty years, depending on the amount of balance remaining on the private loans.
However, this does increase the costs of the interest rates.
Figuring out how to pay for both college tuition and student loans is a problem plenty of undergraduates and graduates are struggling with, especially in this difficult economy, where less and less businesses are providing employment opportunities to recent graduates.
With the increase of the number of loans students are taking out to be able to afford the costs of living associated with living at college, there is an increased opportunity for students to consolidate their loans and make it easier for them financially by making only one payment per month to cover the balance of all the other loans they have taken out.