James asks…
What’s the difference between these Federal Student Loans?
Federal Stafford loan and Federal Direct loan? Are they the same?
Ohh and I already know the dfference between subsidized and unsubsidized, so no need to explain.
Thanks for any help!
Nagesh answers:
A Stafford loan can either be a Direct loan or it can be a FFEL loan.
Yes, they are the same.
Http://studentaid.ed.gov/students/attachments/siteresources/FundingEduBeyondHighSchool_0910.pdf see chart on page 19 for excellent breakdown of the different types of loans.
Mary asks…
Can I refinance my federal student loans through a credit union?
I have federal student loans through Direct Loans. They re-did my repayment plan and I am paying way too much interest. I am already paying on these loans for about 2 years. I am on an income contingent plan. I was wondering if I am able to get a loan from a credit union to cover these loans to get a lower interest rate.
Nagesh answers:
It will depend on your credit worthiness, how much you owe, whether you’re current, and the credit union itself.
It IS possible to refinance loans through some banks or credit unions. But, you should never, ever refinance a federal loan with a private loan (which is what you would be getting through a credit union).
Private student loans don’t have an “income contingent repayment plan”, nor are they ever forgiven as federal loans can be.
John asks…
How long does it take to get your federal student loan garnished?
I received my student loan statements from Direct Loans and they show current. Also on my credit check they show Current. I however have not paid them. Its been about 1 year and a half. How long does it take for them to garnish it? I haven’t received anything saying its delinquent either. I am going to call them tomorrow morning. But I would like to get an idea of how it works
Nagesh answers:
Not sure how long they will take to garnish the loan, but you do have options even if it happens- you can visit http://www.studentloanborrowerassistance.org to find out how to object to a garnishment. Also, you may want to consider loan consolidation and repayment options at www.directschoolloan.org.
Laura asks…
Can I consolidate federal parent plus loans that are under 2 different names and 2 different companies?
My parents got parent plus loans for me for college. My first year of college it went under my dads name and the other years it went under my moms name. Also since i transfered, the first 2 years are under sallie mae and the other 2 are under direct loans.
Can these all be consolidated into one loan?
Nagesh answers:
Not if they are loans for two different people – one for dad and one for mom. You cannot consolidate any PLUS loans because they are your parents’ loans, not yours.
Chris asks…
The economy is getting worst by the day and I have student loans growing interest? How can I pay them now?
I have $25,000 in student loans, all from Direct Loans. My problem is that I am currently defaulting my loans and interest is growing like the monster it is. I’m going to graduate this fall semester in a degree in Information Systems. How is the job market for IS/IT positions today? Are there any alternate fields I can go into with a BS degree in Business with a concentration in Information Systems?
Sorry, I mean deferring not defaulting. Sorry for any confusion.
Nagesh answers:
So you have $25k in loans and you are still in school. You are actually in great shape.
When you take out Federal student loans, you typically don’t have to pay them until you have been out of school for six months. It sounds like you took a break at some point and your loans have gone into repayment status.
If your loans are in repayment then you have the option of putting them in forbearance, during which the unsubsidized portions of your loans will accrue interest, or an in school deferment. You have three years of deferment and three years of forbearance during which you don’t have to make any payments. That gives you six years.
Then, you can consolidate your student loans. When you consolidate your loans, deferment and forbearance reset. That gives you another six years so if you can’t find a well paying job, you have a total of twelve years to get things together, and even then, if you take out at least $500 more in loans, you can consolidate again which gives you another six years.
From what I have heard, the IS/IT sector is as hard hit as much of the rest of the economy. Last month IT layoffs were around 125,000. Luckily, the government is hiring like mad. If you were to have good grades then you would start out as a GS-7 if you worked for the federal government, which pays very well. In addition, I believe there are some loan assistance repayment programs which help pay back your loans if you work for the government or a non-profit.
(Oops, I just saw your additional details, oh well)
Your worst case scenario – go to grad school!
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