Why Come to Us?
It’s true that you can sometimes file your loan application directly. However, just like when you file your own tax return, a lack of specialized knowledge could prove your undoing. When you use an approved tax specialist, you’re getting help from someone who knows tax matters inside out, and this means peace of mind going forward. The same argument applies when seeking consolidated federal loans. Having somebody on your side who knows the system makes using Student Loan Exchange the much more advantageous option.
How We Work
We give students and graduates nationwide the gift of both convenience and peace of mind, and it sure beats wasting time surfing various government websites. Our trained debt consolidation experts guide you through the application process, so you obtain exactly the result you want faster. They don’t file an application until it is both correct in every area and destined to achieve what you desire.
Our organization operates on a performance-based policy of a money back guarantee, if somehow we should fail to secure debt consolidation for you. We also advise on which income based student loan repayment plan best suits your individual financial situation. This lets you concentrate on the more important task at hand: completing your studies and securing employment afterwards. If you have trouble managing after graduation, we offer help with student loan forgiveness too. Check our FAQs page for more information.
Should You Consolidate Your Loans?
Carefully consider whether loan consolidation is the best option for you. The benefit is that it greatly simplifies loan repayment by centralizing your loans to one bill and lowers monthly payments by giving you up to 30 years to repay. You might also have access to alternative repayment plans you wouldn’t’ have had before, such as Income Contingent Repayment. Plus, you can switch your variable interest rate loans to a fixed interest rate. This is one of several ways to reduce student loan payments.
However, if you increase the length of your repayment period, you also make more payments and pay more in interest. Our consultants are happy to help you compare your current payments to what they would be if you consolidated your loans. Please be aware that once your loans are combined into a direct consolidation loan, the action cannot be undone. This is because the loans that were consolidated cease to exist.
What Types of Loans Can Be Consolidated?
Most federal student loans, including those listed below, are eligible for consolidation. Note, however, that private education loans are not. If you’re in default, you must meet certain requirements before you can consolidate your loans. Consolidation can’t be used to transfer a PLUS loan granted to the parent of a dependent student to the student. Therefore, students applying for loan consolidation can’t include the PLUS loan the parent took out for the dependent student’s education. Those that can be consolidated include:
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Subsidized Federal Stafford Loans
- Unsubsidized Federal Stafford Loans
- Health Education Assistance Loans
- Direct PLUS Loans
- PLUS loans from the Federal Family Education Loan (FFEL) Program
- Supplemental Loans for Students (SLS)
- Federal Perkins Loans
- Federal Nursing Loans
- Some Existing Consolidation Loans
Your Student Loan Repayment Options
The Standard Repayment Plan allows a fixed monthly payment over ten years; the amount you borrowed determines your actual payment. Or you could try the Graduated Plan, where you start with a lower monthly installment for the first two years. The payment then increases every two years over the ten-year loan term. If you need more time, try the Extended Plan. This option gives you up to 25 years. You then choose either fixed monthly installments or an extended graduated plan. Remember, the longer you take to settle a loan, the more interest you end up paying. Other choices include Income Contingent, Income Based, and the Pay as You Earn (PAYE) student loan repayment plans.
In the Contingent Plan. monthly payments are arranged according to your adjusted gross income. If your payment doesn’t cover the interest factor, we capitalize the unpaid portion back to your loan. After 25 years, we discharge you from any outstanding balance. The Income Based plan is similar in that your income determines the payment, allowing for annual adjustments. Under certain conditions, we may discharge you from any balance outstanding after ten years. If you opt for PAYE, your payment may move up or down each year according to your family size and your actual income. Typically, this plan has the lowest monthly bill of the income-based bunch, so qualification depends on proof of partial financial hardship.
The Loan Forgiveness Plan
Assuming you make the 120 loan repayments on time under the Income Contingent, Income-Based, or PAYE repayment plans while working at a qualifying, public service job full-time, you can apply to have the outstanding balance left on your loan discharged. Sectors qualifying for this relaxation include any employment with a local, state, or federal government organization, entity, or agency.
Nonprofits with a valid 501 (3) (c) tax-exempt status from the IRS are also included. This differs from non-public employment service employees in that, for the public sector we’ve outlined above, the enduring loan balance as discharged stays untaxed as income by the IRS.