Consolidating unsubsidized stafford loans
The good news about federal government loans is that there are many different programs available to help you if you are having trouble repaying these loans.There are even ways to cancel these loans in limited circumstances.The federal student loan programs are highly regulated by Congress and the U. There are, however, a few important differences in available repayment plans for FFEL and Direct borrowers.For example, you must be in the Direct Loan program to qualify for public service forgiveness.Stafford loan limits vary depending on whether you are financially dependent or independent.
Unlike Stafford loans, PLUS borrowers are generally required to pass a credit check.Consolidating federal student loans may be a good strategy to lower monthly payments or to get out of default, but it is not always a good idea.Direct consolidation loans are now the only type of federal student consolidation loan.The fixed interest rate for undergraduate Stafford loans first disbursed on or after July 1, 2019 and before July 1, 2020 is 4.53%. Most older loans from before July 2006 have variable interest rates.
After 2007, the interest rates are fixed, but change almost every year.
The bad news is that the federal government has extraordinary powers to collect student loans if you default.