Consolidating direct stafford loans
(see box below), You can consolidate during grace periods.
This may lead to a lower interest rate on a Direct Consolidation loan, but only if you are consolidating variable rate loans. You will generally receive your first bills within 60 days after the new Direct Consolidation loan is made.
You will lose your rights under the federal loan programs once you choose to consolidate with a private lender.Borrowers in default may also consolidate in certain circumstances.Consolidation was previously available to borrowers while they were still in school. Congress also eliminated joint consolidation for spouses, effective July 1, 2006.Using Studentloans.gov: You will need to sign in using your personal identifiers and PIN. You have four different “consolidation servicers”: Fed Loan Servicing (PHEAA), Great Lakes, Nelnet and Sallie Mae (now called Navient). (“Joint and several liability” means that both borrowers are fully liable for the full amount of the debt). Not surprisingly, this caused a lot of problems for borrowers and Congress eliminated the program as of July 1, 2006.The electronic application consists of five steps: 1. If may make this choice on-line or if you are sending in a paper application, you should send directly to the servicer you choose. The Department provides some general information about servicer performance in the on-line data center and quarterly performance reports. There are still many borrowers struggling with joint consolidation loans.