158:
while doing so would incur an additional cost of $ 46 million, caused by the higher administrative costs of the FDLP compared to the FFELP, this would be offset by a $ 3,100 million saving comprised in part of avoiding $ 2,500 million in subsidy costs. In 2008, turmoil in the financial and credit markets has led to the suspension of many loan consolidation programs, including Sallie Mae, Nelnet and Next
Student.
157:
considered consolidating consolidation loans so that they were exclusively managed through the FDLP. Based on several assumptions about future variations in interest rates, the loan volume, the percentage of defaulters, cost estimates from the United States
Department of Education, it concluded that
149:
changed the interest rate to the aforementioned fixed rate weighted mean, effective
February 1, 1999. Consolidation loans taken out before that date had a variable interest rate, determined by the individual FDLP loan origination center (e.g., in the case of a university, that university) or FFELP
136:
of the interest rates of the loans being consolidated, assigning relative weights according to the amounts borrowed, rounded up to the nearest 0.125%, and capped at 8.25%. Some features of the original consolidated loans, such as postgraduation grace periods and special forgiveness circumstances,
131:
Consolidation loans have longer terms than other loans. Debtors can choose terms of 10–30 years. Although the monthly repayments are lower, the total amount paid over the term of the loan is higher than would be paid with other loans. The fixed interest rate is calculated as the
39:
178:"GAO-06-195 Highlights, STUDENT CONSOLIDATION LOANS: Potential Effects of Making Fiscal Year 2006 Consolidation Loans Exclusively through the Direct Loan Program"
347:
642:
417:
236:
266:
71:
43:
99:
434:
108:
67:
611:
426:
19:
184:
154:
284:
331:
516:
31:
370:
201:
137:
are not carried over into the consolidation loan, and consolidation loans are not universally suitable for all debtors.
55:
35:
205:
355:
258:
410:
561:
374:
403:
146:
351:
309:
285:"FFELP Consolidation for Students Enrolled or In-Grace: A How-To Guide for Financial Aid Administrators"
502:
244:
120:
83:
612:
https://fsapartners.ed.gov/knowledge-center/topics/health-education-assistance-loan-heal-information
625:
600:
51:
133:
322:
586:
547:
378:
636:
395:
112:
87:
572:
291:
339:
209:
177:
116:
91:
562:
https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized
145:
The
Federal Loan Consolidation Program was created in 1986. In 1998, the
111:(FDLP) includes consolidation loans that allow students to consolidate
47:
626:
https://studentaid.gov/help-center/answers/article/stafford-loan
521:
PLUS loans from the
Federal Family Education Loan (FFEL) Program
601:
https://studentaid.gov/help-center/answers/article/ffel-program
399:
332:"House Committee Approves Bill to Extend Higher Education Act"
377:
208:
Office of
Student Financial Aid. 2006-06-09. Archived from
237:"Amid the hype, opportunity lurks for students with loans"
587:
https://www.mohela.com/DL/resourceCenter/glossary.aspx
548:
https://studentaid.gov/understand-aid/types/loans/plus
202:"Frequently Asked Questions About Consolidation Loans"
492:
478:
458:
433:
573:https://studentaid.gov/manage-loans/consolidation
530:Unsubsidized/Nonsubsidized Federal Stafford Loans
15:
290:. National Student Loan Program. Archived from
411:
8:
621:
619:
259:"Types of Student Aid: Consolidation Loans"
418:
404:
396:
230:
228:
226:
582:
580:
540:
166:
596:
594:
318:
307:
557:
555:
267:United States Department of Education
196:
194:
172:
170:
72:Federal Family Education Loan Program
7:
354:School of Law. 2006. Archived from
150:lender (e.g., a third party bank).
109:Federal Direct Student Loan Program
68:Federal Direct Student Loan Program
643:Student loans in the United States
499:Auxiliary Loans to Assist Students
427:Student loans in the United States
14:
524:Subsidized Federal Stafford Loans
513:Health Education Assistance Loans
485:Loans for Disadvantaged Students
465:Health Professions Student Loans
185:Government Accountability Office
155:Government Accountability Office
527:Supplemental Loans for Students
517:National Defense Student Loans
32:National Defense Education Act
1:
336:Chronicle of Higher Education
263:Student Guide 2001–2002
371:"Federal Loan Consolidation"
348:"Federal Loan Consolidation"
330:Burd, Stephen (2005-08-05).
56:Expected Family Contribution
36:Higher Education Act of 1965
283:Teresa Boldt (2005-06-03).
235:Potier, Beth (2004-02-05).
206:Washington State University
127:Interest rates and payments
659:
451:Direct Consolidation Loans
107:In the United States, the
448:Direct Unsubsidized Loans
20:Student loans in the U.S.
510:Guaranteed Student Loans
507:FFEL Consolidation Loans
445:Direct Subsidized Loans
375:Northwestern University
123:into one single debt.
44:U.S. Dept. of Education
317:Cite journal requires
147:United States Congress
62:Distribution channels
471:Nursing Student Loans
352:Pepperdine University
342:on February 17, 2008.
121:Federal Perkins Loans
100:Private student loans
26:Regulatory framework
503:Federal Perkins Loan
468:Nurse Faculty Loans
96:Consolidation Loans
435:Federal (National)
52:Cost of attendance
537:
536:
442:Direct PLUS Loans
105:
104:
650:
628:
623:
614:
609:
603:
598:
589:
584:
575:
570:
564:
559:
550:
545:
420:
413:
406:
397:
389:
387:
386:
366:
364:
363:
343:
338:. Archived from
326:
320:
315:
313:
305:
303:
302:
296:
289:
271:
270:
255:
249:
248:
243:. Archived from
232:
221:
220:
218:
217:
198:
189:
188:
182:
174:
134:weighted average
16:
658:
657:
653:
652:
651:
649:
648:
647:
633:
632:
631:
624:
617:
610:
606:
599:
592:
585:
578:
571:
567:
560:
553:
546:
542:
538:
533:
488:
474:
454:
429:
424:
393:
384:
382:
369:
361:
359:
346:
329:
316:
306:
300:
298:
294:
287:
282:
279:
277:Further reading
274:
257:
256:
252:
241:Harvard Gazette
234:
233:
224:
215:
213:
200:
199:
192:
180:
176:
175:
168:
164:
143:
129:
98:
90:
70:
50:
42:
38:
34:
12:
11:
5:
656:
654:
646:
645:
635:
634:
630:
629:
615:
604:
590:
576:
565:
551:
539:
535:
534:
532:
531:
528:
525:
522:
519:
514:
511:
508:
505:
500:
496:
494:
490:
489:
487:
486:
482:
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476:
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469:
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460:
456:
455:
453:
452:
449:
446:
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431:
430:
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415:
408:
400:
391:
390:
367:
344:
327:
319:|journal=
278:
275:
273:
272:
250:
247:on 2006-12-11.
222:
190:
165:
163:
160:
142:
139:
128:
125:
113:Stafford Loans
103:
102:
80:
79:
78:Loan products
75:
74:
64:
63:
59:
58:
28:
27:
23:
22:
13:
10:
9:
6:
4:
3:
2:
655:
644:
641:
640:
638:
627:
622:
620:
616:
613:
608:
605:
602:
597:
595:
591:
588:
583:
581:
577:
574:
569:
566:
563:
558:
556:
552:
549:
544:
541:
529:
526:
523:
520:
518:
515:
512:
509:
506:
504:
501:
498:
497:
495:
491:
484:
483:
481:
477:
470:
467:
464:
463:
461:
457:
450:
447:
444:
441:
440:
438:
436:
432:
428:
421:
416:
414:
409:
407:
402:
401:
398:
394:
381:on 2005-06-03
380:
376:
372:
368:
358:on 2007-11-24
357:
353:
349:
345:
341:
337:
333:
328:
324:
311:
297:on 2006-10-05
293:
286:
281:
280:
276:
268:
264:
260:
254:
251:
246:
242:
238:
231:
229:
227:
223:
212:on 2007-03-14
211:
207:
203:
197:
195:
191:
187:. 2005-12-01.
186:
179:
173:
171:
167:
161:
159:
156:
153:In 2005, the
151:
148:
140:
138:
135:
126:
124:
122:
118:
114:
110:
101:
97:
93:
89:
85:
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66:
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57:
53:
49:
45:
41:
37:
33:
30:
29:
25:
24:
21:
18:
17:
607:
568:
543:
493:Discontinued
392:
383:. Retrieved
379:the original
360:. Retrieved
356:the original
340:the original
335:
310:cite journal
299:. Retrieved
292:the original
262:
253:
245:the original
240:
214:. Retrieved
210:the original
152:
144:
130:
106:
95:
115:, Graduate
385:2007-02-15
362:2007-02-15
301:2007-02-15
216:2007-02-15
162:References
117:PLUS Loans
40:HEROES Act
637:Category
88:Stafford
459:Medical
183:. U.S.
141:History
84:Perkins
119:, and
479:Other
295:(PDF)
288:(PDF)
181:(PDF)
48:FAFSA
323:help
92:PLUS
639::
618:^
593:^
579:^
554:^
373:.
350:.
334:.
314::
312:}}
308:{{
265:.
261:.
239:.
225:^
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193:^
169:^
94:·
86:·
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419:e
412:t
405:v
388:.
365:.
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321:(
304:.
269:.
219:.
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.