Who Qualifies For Federal Student Loan Consolidation
Wondering who qualifies for federal student loan consolidation? Look no further; the answers are all right here: Parent and student borrowers can qualify for federal loan consolidation. Whether their debts come from the PLUS federal student loan for parents or the Direct Loan for students, the borrower can qualify.
Students and parents cannot combine their debts into one federal student loan consolidation program, though; their debts must be consolidated separately. Spouses are no longer allowed to consolidate their federal student loan debts together.
There were problems when couples separated or divorced, but were still required to make payments for their federal student loan consolidation together. As a result, Congress repealed the spousal provision of the federal consolidation law, and the new rules have been in effect since July 1, 2006. Students and parents can only enter into a federal student loan consolidation program during the grace or forbearance period, or after the borrower has begun repaying them. In some cases, a federal student loan that is in default status may also be consolidated, but only with satisfactory repayment arrangements. Students and parents can no longer secure federal loan consolidation when the student is currently attending college, either, as of July 1, 2006.
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