The William D. Ford Federal Direct Loan Program are available to borrowers who have federal loans and are no longer in school. Generally speaking, federal loans have many more beneficial aspects to them versus their private loan counterparts. Therefore having the government combine your federal loans together is, typically, a much more viable option than converting them into a private debt. Also when dealing with a federal student loan, it is much easier to qualify for, unlike private loans they:
- Borrowers have the option to extend the term of a loan, allowing for lower payments (if they have the money, borrowers can prepay with no penalty to keep the interest from piling up).
- Allows borrowers to enroll in programs that set the payment amount based on the borrower’s income rather than a traditional loan model. This can keep your payment manageable even if you have low income and provide flexibility should you face reduced income at any point. These programs can often drastically reduce the monthly payment for people with low income.
- It can get some borrowers currently in default out of default (those with wage garnishments are not eligible and must go through student loan rehabilitation first)
- For those borrowers that qualify, allows for eligibility for Public Service Loan Forgiveness (after 120 payments)
- For those borrowers that qualify, allows for eligibility for Public Service Loan Forgiveness (after 120 payments)
- Allows the borrowers to choose who they want to service their loans with: Navient, FedLoan Servicing, Great Lakes or Netnet
- Allows borrowers to sync all their loans with one servicer
Alumni Support Center is a specialize company that educates student loan borrowers on government programs and prepare applications for applicants who wish to enroll into the various programs offered through The Department of Education. We will counsel and walk you through your options and help prepare and finalize your documents, depending on which program(s) you choose. Alumni Support Center is not affiliated with Federal, State, or Local Government agencies. Alumni Support Center is not a loan servicer or originator. Consumers with student loan debt have the legal right to use an attorney or process federal student loan services documentation on their own behalf through the Department Of Education.