Student Loans
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There are several types of loans available to pay for school.

It's important to know which kinds you took out in the past.

Direct Stafford Loans

This loan type is available to both undergraduate and graduate students.

The interest rate typically varies depending on when the loan was disbursed. There are two types of Direct Stafford Loans.

Subsidized
​ED will pay on the interest from the time the loan is disbursed while you're in-school, under grace period and on periods of deferment.

Unsubsidized
​The borrower is responsible for paying all of the interest on the loan from the time it's disbursed until the loan is paid in full.

Family Federal Educational Loan Program
The FFEL program offers various types of loans including:

Stafford Loans
​(both subsidized 
​& unsubsidized)

​ Federal PLUS Loans
​(both subsidized 
​& unsubsidized)

Understanding Interest

Interest accrues every day from the date of disbursement; however, depending on your loan type or repayment plan, such as Income-Driven Repayment plans, you may not always be responsible to pay the accrued interest.

To calculate your daily interest accrual, use the following formula:


Interest rate × current principal balance ÷ number of days in the year = daily interest


Example: Sara Student has a $10,000.00 current principal balance and

6% interest rate.

As a result, Sara's loans will accrue $1.64 in interest per day (until her principal balance is reduced by future payments).

The U.S. Department of Education will pay the accrued interest on your subsidized student loan during:

-Your in-school.


- Your grace period if your loan was disbursed before July 1, 2012 or on/after July 1, 2014.


- An approved deferment.

ARE YOU ON THE EDGE OF DEFAULT?

    The U.S Department of Education will buy out your active trade lines from your current servicer through consolidation, giving you one brand new loan!

Already Defaulted?

Did you know that your wages and even your tax return can be garnished by Debt Management and Collections Systems once your 270 days in default? Ask your consultant about 'Default Aversion today!