How to Reduce Federal Student Loans

1. Visit the U. S. Department of Education's web site at "loanconsolidation. ed. gov" to apply for the consolidation. You can submit a consolidation application free of charge electronically, file an application by phone or utilize by mailing a paper application.

2. Assess whether consolidation is a great option. Loan consolidation is a good option if the typical interest rate after consolidation is less than the lowest interest rate of all of your loans. If the U. S. Department of Training approves your consolidation application, you will repay your student loans at mortgage loan equal to the average interest rate of your own loans, which is limited to 8. 25 %, as of 2011.

3. Complete your consolidation application and submit it straight to the U. S. Department of Education. Under the actual Direct Consolidation Loan program, you may have as much as 30 years to repay your loans. According towards the Department of Education, most students can consolidate their own loans. Loan consolidation is available to students along with Federal Family Education Stafford Loans, Supplemental Loans, Perkins Financial loans, Health Education Assistance Loans and FFEL PLUS Financial loans. If you have unsubsidized Stafford or Direct Loans you might be able to consolidate those too.

Make an application for Loan Forgiveness

4. Review the U. S. Division of Education's Fact Sheet on Loan Forgiveness with regard to Public Service Employees. The Department of Education offers various kinds loan forgiveness programs for public sector employees. Programs are made for teachers, attorneys and other full-time public service professionals who satisfy the eligibility requirements for their occupational forgiveness programs. Only public sector employees be eligible for a loan forgiveness under federal law.

5. Apply for loan forgiveness with the loan servicing program you applied under.

Change Repayment Plans

6. Get in touch with your loan servicer. There are different loan servicers for every federal student loan program. For instance, Sallie Mae is really a loan servicer for the Direct Loan Program. You must obtain a different repayment plan by contacting your loan servicer straight.

7. Complete an application to change your payment plan. The U. S. Department of Education provides standard and extended repayment plans. With an prolonged plan, you can have up to 25 years to settle your loans, instead of the 10 years offered underneath the standard repayment plan. You must obtain your application directly out of your loan servicer.

8. Submit your application for a big change in repayment directly to your loan servicer.