Student Loan Consolidation For Students Currently In School
Student loan consolidation is a great way to lower payments, and make repayment easier. Unfortunately, student loan consolidation while attending school is no longer available as of July 1, 2011. However, students attending school below half-time status are still eligible for student loan consolidation.
While consolidation is no longer available, here are some other ways to manage your loan while in school:
What if the borrower does not want the in-school deferment status, and prefers to enter repayment while attending school.
A borrower may choose to enter repayment while in school. However, the borrower is then forfeiting the subsidy provided by the in-school deferment (the government paying the interest on the subsidized portion of the loans while the borrower is in school).
Can a borrower make interest payments while in their in-school deferment period in order to avoid interest capitalization on their unsubsidized loans?
Yes, a borrower may make "unscheduled" payments during their in-school deferment on the unsubsidized portion of their loan. If a borrower chooses to enter repayment during school, thereby waiving their entitlement to an in-school deferment, they must choose Select 2 or Select 5 if they only want to pay the interest.
Do you have more questions about student loan consolidation? Then check out these other helpful resources:
