Consolidating student loans for medical students
Student debt has reached an all-time high in the U. of late, with an estimated 40 million people now owing an average balance of ,000, according to credit report company Experian.
With student loans soaring, debt-saddled students and graduates are desperate for any strategy that may help them escape their burden.
Further, the only consolidating agency left is the Federal Government through Direct Loans.
Loan consolidation between borrowers and lenders has virtually disappeared.
In other words; the Federal Government would determine your eligibility for subsidized loans, and then a private credit union, bank or loan servicer would provide the funds.
Bank of America was active in that market, providing financing for participants in the Federal Family Education Loan Program (FFELP).
Most loans can be discharged in the following situations: "Circumstances beyond the borrower's control" do not include things like having to drop out of college before graduation or inability to find a job after graduation.
However, there is a possibility that they could include a school using illegal recruiting tactics – for example, guaranteeing the student a well-paid career. Department of Education promised debt relief to students of the bankrupt for-profit Corinthian Colleges schools (click here for more information on how to apply).
Income-based repayment plans are also a feasible alternative and can reduce your payment in the short term, but taken alone, they do little to help you out over the life of your loans.
The Higher Education Reauthorization Amendments of 1986 reinstated educational loan consolidation.
The Higher Education Reauthorization Amendments of 1992 now makes it possible for students who are delinquent or in default to consolidate loans.
Also, married couples were able to consolidate loans as long as they agree to be jointly and severally liable for repayment.
In the student loan legislation of 2007, the ability to consolidate loans as a married couple was eliminated.