By now, you’ve probably seen the news of how your federal student loans are being converted to the American Online Loan Consolidator (AOLC) service.
The idea behind this is that by consolidating your student loan payments, you can avoid interest charges, taxes and penalties that may otherwise be incurred on the loans you’re refinancing.
While you might not want to pay those interest rates on the federal loans you’ve refinance, you might want to defer them if you do decide to take on a federal loan.
Here are some steps to take to consolidate federal student loan balances and avoid interest and taxes on your federal loans.1.
Establish a payment schedule for the Federal Direct Loan (Direct Loan) program.
The Federal Direct Loans (FDLs) program is a federal student aid program.
Under this program, students can borrow up to $4,300 for four years to attend college.
As part of this repayment schedule, students are eligible to make payments on their federal loans until they graduate.
This means that, after you complete your four years of repayment, you’ll receive a check from the U.S. Treasury totaling $1,600.2.
Review your loan repayment schedule.
You can review your monthly payments by visiting the U-S.
Department of Education’s (USED) Loan and Funding Information page.
The page will show the payment schedule that will apply to your federal Direct Loan payments, along with any other adjustments you may need to make.3.
Determine if your loan payments are eligible for consolidation.
If you are not enrolled in the Direct Loan program, you must complete an online application to be considered for consolidation, but you can also submit your loan statements online.
To apply for consolidation for the Direct Loans, you should complete an application for consolidation that is available online.
You should also make sure you are eligible and able to repay the federal loan on time.4.
Apply for consolidation online.
If your payment schedule does not allow you to make the consolidation payment, you may want to consider applying for consolidation directly through your lender, or by contacting your lender to schedule an appointment.
You will need to provide documentation that proves your income and the amount of your loan.5.
Apply and pay your consolidation payments.
After completing your application and payment schedule, you will receive a letter from your loan servicer.
The letter will indicate that you have met the requirements to apply for the consolidation of your federal loan payments.
The loan servicers will send you an email with instructions on how to complete your consolidation.6.
Submit your consolidation application.
The payment schedule will allow you the opportunity to apply, pay and complete the consolidation application online.
After you submit your consolidation payment form, the loan services will forward your consolidation information to the borrower.
Once your loan is processed, you receive an email from the loan holder.7.
Apply to consolidate the federal student debt.
The application process may take up to 10 business days.
The process may also take longer if you apply in more than one state.
The borrower’s application should include the following:1.
The name of the borrower’s current address and the mailing address.2