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The cost of higher education continues to rise. Many students can not afford to finish college. Because of this, student loan consolidation has been made available to students. Student loans consolidation of multiple loans is combined into a single loan. The Government of the U.S. and the Department of Education has developed a federal loan to help students pay for their higher education. These loans allow students to combine your federal loans into one loan. By paying a loan they are paying a creditor.
Federal student loans are provided by the U.S. Government and the U.S. Department of Education. The U.S. Direct Student Loan Program (FDLP) and the Federal Family Education Loan Program (FFELP) have been developed to help students and parents to consolidate their loans. These two programs allow students to consolidate PLUS Loans, Loans Federal Perkins and Stafford Loans. Students receive lower monthly payments and a longer repayment period. These loans usually provide rates and lower interest rates. For these programs, the interest rate is usually the weighted average interest rates on loans that have been consolidated. Congress established the formula of the Federal interest rate. Federal programs provide graduates longer periods of repayment. A student may have a payback period of 10 to 30.
There are two programs for the Federal Consolidation Loan:
 • The Federal Family Education Loan Program (FFEL) Program was the result of the Higher Education Act of 1965. The program is funded by public and private partners. FFEL also makes use of public funds and private companies. Private companies that fund this program receive government subsidies.
 • The William D. Ford Federal Direct Loan Program (FDLP), commonly known as Loans Direct. With this particular program, rather than the government or a private company, U.S. Department of Education acts as the creditor, managing student loans.
Federal Loans are three types:
 • The Perkins Loan is a consolidation loan provided by the Department of Education U.S. for college students. It has a fixed interest rate of 5% for a period of 10 years of repayment. With the consolidation of the usual business required to start repayment six months after graduation. With a Perkins loan has a term of nine months after graduation. The student loan limits are $ 5,500 per year with a lifetime maximum loan of $ 27,500. For graduate students, the limit is $ 8,000 per year, with a lifetime limit of $ 60,000.
 • Stafford loan offers a lower interest rate, but has eligibility requirements and strict limits. There are subsidized and unsubsidized loans. With subsidized loans, the interest is paid by the Federal Government. For loans unsubsidized, students pay the interest. Examples of companies Stafford loans are Sallie Mae, JP Morgan Chase, Citibank, Bank of America, Wachovia and Education.
 • A PLUS Loan for parents and graduate students. To be eligible for this loan, the parent or graduate student must pass the verification credit. Usually interest rates are higher. This loan allows parents to use the full cost of college expenses such as tuition, room and board.
Learn How To Consolidate Federal Student Loans, visit http://student-loans-consolidation1.com/consoildate-federal-student-loans
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