If you’re still in class and attending a minimum of half-time, you’ve got nine months after you graduate, leave school, or drop below half-time status before you want to begin repayment. If you’re attending but half-time, the Department of Education suggests checking together with your school to seek out out the length of your grace period.
Perkins Loans must typically be repaid fully within 10 years following the completion of the nine-month grace period. Students typically repay the loan on to their school or to a delegated loan servicer.
When it comes time to repay your Perkins Loan, you’ll even have variety of other options. Your school’s aid office or its loan servicing company can explain the choices available in your case. If you’re unable to start out payments after the nine-month grace period, you’ll apply for deferment or forbearance to postpone repayment. If you’ve got a Perkins Loan from a previous school that’s coming due—and you’re still attending school a minimum of half-time—you might be eligible for an in-school deferment.
Perkins Loans are often eligible for repayments adjusted to fit your income level, but as long as you consolidate them into a federal direct consolidation loan2 . The Department of Education cautions that “if you’ve got federal Perkins Loans and you’re employed in an occupation that might qualify you for Perkins Loan cancellation benefits, you ought to not include your Perkins Loans once you consolidate.
With all four income-driven repayment plans, any remaining loan balance is forgiven once you’ve made the specified payments for the specified number of years. you’ll consolidate your federal loans and also learn more about the method using the Direct Consolidation application on the U.S. Department of Education’s Federal Student Aid website.
Student loan consolidation is a program that helps college students to manage their loan repayments, and if possible, less costly. It combines several student loans into one consolidation loan. When that happens, you only make one payment to all the several loan lenders each month. Usually, this program alone can reduce the amount of stress, fees, and wasted time associated with your loan repayment.
However, consolidating or refinancing your loan can also offer the chance to sign up for different repayment plans and have a low-interest rate on your student loan debt. There two ways to consolidate student loans that can help combine your multiple loans into one:
Direct Loan Consolidation
Private Loan Consolidation ( or Student loan refinancing)
We recommend taking considerable time to decide which program is best suitable for you. When you take the time, it means you are taking charge of your financial life towards a stable and healthy future. To begin, you can talk to your credit counselor and know how to negotiate a deal with your loan lenders and officials. If you work with an experienced and professional credit counselor, you can get the right decision and come out of debt as soon as possible.
Student Loan Consolidation Rates
The student loan consolidation rates determine the cost of your student loans. You can find the fixed rate and variable rate loans with a credible student loan refinance. Remember that, with the variable rate, the interest rate on your student loan can rise and fall depending on the market rates. But if it’s a fixed rate, it will stay stable throughout the loan repayment period. The variable rates are cheaper compared to the fixed-rate, but in a situation where the interest rate rises, it may cost you more in the future.
Direct Loan Consolidation has a fixed rate. Which means, regardless of the interest rate on the market, you’ll always have a fixed rate. It’s a huge benefit because you don’t have to worry about the interest rate rising on the market due to inflation or other economic factors. However, even though it’s fixed, there are times the banks can change your student loan interest rates, so you need to stay alert.