Federal student loans are designed to help the students with finance needed for their education. Once you have borrowed federal student loan you also need to manage it well. Your responsibilities of management include paying back the loan. If you have taken several loans and they are of varying interest it will be difficult to manage all those loans together. In such a case best option is to consolidate the student loans and solve this issue. Best repayment method for federal student loan is income based repayment plan or IBR. For consolidating your loans you can seek the help of debt consolidation and settlement companies that are available online.
You can also consolidate federal student loan with Department of Education. To make this more manageable and to consolidate you need to have certain things like:
For applying for direct loan consolidation first thing you need to do is to log in to the website of National Student Loan Data System. You have to save the file or take print of each loan.
Take print out of Repayment Plan Selection form along with other forms you feel necessary. You might have to take print out of Income forms Alternative documentation along with Consent to Disclosure of Tax Information on the basis of your repayment plan and financial situation.
Next step is to complete the Direct Loan Consolidation application which can be done online. At the end you need to sign the application along with promissory note and with your PIN. You can also take a print out of the application and mail it to Direct Loan Consolidation Centre. On the basis of the plan selected by you it might be necessary to mail a copy of tax return along with forms.
The form for consolidation need to be accurate and so check for any correction and in case you found any report it to the office of Direct Loan Consolidation. In a span of ten days you will get the summary sheet that your balance loan amount has been certified by the Direct Loan Consolidation Center.
After getting the paper call to the office of Direct Loan Consolidation Center to confirm whether they have got all necessary papers in this regard. In case any more papers are needed, make sure to mail the forms so that there won’t be any changes to the plan selected by you.