With college costs rising every year and more people needing to borrow more money to cover those costs, its no wonder there is so much interest in consolidating college loans to make repayment of college debt more affordable. Fortunately there are many resources available to help students and former students repay their college loans and get on with their lives. Direct Subsidized Consolidation Loans can be a big help.

Direct Subsidized Consolidation Loans are designed to help students and former students consolidate their college debt and pay it off at a reasonable interest rate.

What is the interest rate for the Direct Subsidized Consolidation Loans program?

The interest rate for Direct Subsidized Consolidation Loans do fluctuate, however it is capped at 8.25 percent.

What is the maximum repayment term for Direct Subsidized Consolidation Loans?

The maximum term for repayment of Direct Subsidized Consolidation Loans is 30 years.

What types of repayment plans are available for the Direct Subsidized Consolidation Loans program?

There are a number of repayment plans available for the Direct Subsidized Consolidation Loans program. These include standard, income contingent, graduated, extended and alternative. Your school’s financial aid office can provide you with further information on your specific payment options.

Can I prepay Direct Subsidized Consolidation Loans?

Direct Subsidized Consolidation Loans can be prepaid without penalty.

What is the grace period for Direct Subsidized Consolidation Loans?

There is a six-month grace period on the Direct Subsidized Consolidation Loans program.

Are there any deferment options available for the Direct Subsidized Consolidated Loans program?

There are a number of deferment options available for Direct Subsidized Consolidation Loans. These include:

• Attending school at least half time
  
• Attending approved graduate fellowship or rehabilitation program for disabled individuals
  
• Up to a three year deferment if you become unemployed
  
• Up to a three year deferment for economic hardship
  
• Up to a two year deferment while service a required internship or residency
  
• Up to a three year deferment if you are temporarily disabled or you need to provide full-time care for a disabled dependent
  
• Up to a three year deferment while teaching in a designated teacher shortage area
  
• Up to a three year deferment while serving in the Armed Forces, Peace Corps, Public Health Service, ACTION or as a full-time volunteer for a tax-exempt organization
  
• Up to a three year deferment while on active duty in NOAA corps
  
• Up to a six month deferment while on qualifying parental leave