Craig Molldrem, CLU, ChFC

  Consolidation offers the benefits of simplicity and payment relief. Consolidating your loans lets you create one large loan with a weighted average interest rate, instead of using multiple lenders with different interest rates applied to each loan.  

After you consolidate your loan, you can choose from among four primary options for repayment: 

You also have four options for executing the loan consolidation: Use a loan consolidation planner, apply by phone through the Federal Direct Loan Consolidation line at 800-557-7392, fill out a paper application (available at 

http://loanconsolidation.ed.gov/forms/forms.html

https://loanconsolidation.ed.gov/AppEntry/apply-online/appindex.jsp

Answers to our readers' questions were provided by Craig Molldrem, CLU, ChFC, a financial adviser with North Star Consultants of Texas Medical Division, Dallas. Securities and investment advisory services offered through CRI Securities LLC and Securian Financial Services Inc., members FINRA/SIPC. CRI Securities LLC is affiliated with Securian Financial Services, Inc., North Star Consultants Inc., North Star Consultants Texas Inc., and North Star Resource Group. North Star Consultants Inc., North Star Consultants Texas Inc., and North Star Resource Group are not affiliated with Securian Financial Services Inc; they are independently owned and operated. 

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Thinking about consolidating your student loan? Discover the advantages and disadvantages.

Student loan consolidation offers advantages

The Federal Student Aid office of the U.S. Department of Education is offering a new "special loan consolidation" program that allows some loans to be consolidated into the direct loan program that were not eligible in the past. The consolidation offer is available only until June 30. The types of loans eligible for this new consolidation: 

This consolidation can benefit you especially if you are in the income-based repayment program and intend to take advantage of the Public Service Loan Forgiveness (PSLF) program. The larger the amount of your consolidated loans and the longer you are in training, the greater the dollar amount that will be forgiven, provided you meet the PSLF's criteria for loan forgiveness. 

Answers to our readers' questions were provided by Craig Molldrem, CLU, ChFC, a financial adviser with North Star Consultants of Texas Medical Division, Dallas. Securities and investment advisory services offered through CRI Securities LLC and Securian Financial Services Inc., members FINRA/SIPC. CRI Securities LLC is affiliated with Securian Financial Services, Inc., North Star Consultants Inc., North Star Consultants Texas Inc., and North Star Resource Group. North Star Consultants Inc., North Star Consultants Texas Inc., and North Star Resource Group are not affiliated with Securian Financial Services Inc; they are independently owned and operated.

Wishing you could consolidate some of your medical school loans? The federal government is making it easier now than ever before.

More medical school loans eligible for consolidation

 Yes, it is true. A new form from the U.S. Department of Education allows you to document as you go your employment at a 501(c)3 (nonprofit) organization. It addresses the need for doctors to prove that they have 10 years or more of employment with a nonprofit to qualify for the PSLF program. The form can be found at 

http://studentaid.ed.gov/students/attachments/siteresources/ECF_PSLF.pdf

Fill out this form annually while employed at a nonprofit and when you change jobs.  

Find out how you can easily document employment at a nonprofit to take advantage of a loan forgiveness program.

Author | Craig Molldrem, CLU, ChFC

Articles

Student loan consolidation offers advantages

More medical school loans eligible for consolidation

New form eases process of documenting nonprofit employment