Consolidating public and private loans

18 Jun

The government pays your interest for you while you’re in school.

Subsidized loans are reserved for students who can demonstrate a financial hardship.

The average student loan debt for 2016 college graduates who borrowed for college, was ,172 and 70% of the graduates left school owing money.

Private student loans are available, but every expert, even those who work for banks and credit unions, advise students to exhaust all avenues for federal aid first.

Some students may also be eligible for private loans or health professional loans, depending on their credit standing and area of study, respectively.

In total, your undergraduate and graduate Stafford Loans cannot exceed 8,500.

Though there are two major sources of student loans — federal and private – the federal side dominates the action, both in amount of money available and loan repayment programs.

There were 21 million students enrolled in colleges and universities in the fall of 2016 and eight million of them received federal loans from the William D. The students took in 6.3 billion in loans, or about ,040 per student. Ford Federal Direct Loan Program includes Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans and Direct Consolidation Loans.

Most go to students whose families’ annual income is less than ,000.

If you’re an undergraduate, the maximum annual amount of a subsidized loan depends on your year in school.