Can a Federal Direct Consolidation Loan help you manage your debt?

There could be reasons why debt consolidation is not best solution for any particular student. If a student is close to end of their repayment term, for example, it may not be worth work to consolidate. Prolonging life of your loan is likely to increase amount you pay overall. If you can afford higher monthly payments to pay off debt sooner, you can ultimately save money by doing so.

If, however, you are sure that a Federal Direct Consolidation Loan will be to your benefit, you still need to be eligible for program. The eligibility guidelines can be found at loanconsolidation.ed.gove/borrower/beligible.html In addition, list of loans that are eligible for consolidation can be viewed at: loanconsolidation.ed.gov.borrower/bloans.html

Which Federal Student Loan Consolidation Plan is most suitable for you?

Here are 4 consolidation loan consolidation plans that are available to choose from:

Standard: The standard repayment plan is fixed-rate, and runs for a maximum of 10 years. The minimum monthly payment is $50.

Extended Repayment Plan: this is a fixed rate plan, with payments extending over course of 12-30 years. Payments are a minimum of $50, and life of loan is dependent on total amount of debt.

Graduated Repayment Plan: Under graduated plan, payments start low and increase, generally every two years. The length of repayment period can vary from 12 right up to 30 years.

Income Contingent Repayment Plan: The monthly payment is based on a borrower's annual adjusted gross income, family size and total amount of direct loans.

If your student loan debt is out of control, or could be better managed, it is worth paying a visit to: https://loanconsolidation.ed.gov to see how federal government can help you with a debt consolidation loan for students.

Foreclosure is a serious thing. Do not take it lightly. If you foreclose on a home, you will completely ruin your credit. There is simply nothing that you can do worse for it. If you are in position that you no longer can afford your home, take opportunity to sell it first. At least you will have cleared your debt in a good way and left your credit in tact. If you are currently in foreclosure, you need to take steps to secure right lawyer to help you through it.