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How to Consolidate Federal Student Loans – William D Ford Act & Federal Loans

There are two Programs for Federal Loan Consolidation:
o The Federal Family Education Loan Program (FFEL) resulted from the upper Education Act of 1965. Private and public partners fund the program. FFEL also makes use of state funds and personal companies. The private companies that fund this program receive subsidies from the govt.

o The William D Ford Act, commonly referred to as Direct Loans. With this particular program, rather than the govt or a personal company, the U.S. Department of Education acts because it handles the student’s loans.

Federal Loans have three types:
o The Perkins Loan may be consolidated provided by the U.S. Department of Education for school students. It’s a hard and fast rate of interest of fifty for a ten year repayment period. With usual consolidation companies, you’re required to start repayment after six months of graduation. With the Perkins Loan, you’ve got a nine-month period after graduation. Undergraduates’ loan limits are $5,500 per annum, with a lifetime maximum loan of $27,500. The limit is $8,000 per annum for graduate students, with a lifetime limit of $60,000.

o Stafford Loan offers a lower rate of interest but has strict eligibility requirements and limits. There are subsidized and unsubsidized loans. With Subsidized loans, the interest is paid by the federal. For Unsubsidized Loans, the scholars pay interest. Samples of Stafford loan companies are Sallie Mae, JP Morgan Chase, Citibank, Bank of America, and Wachovia Education.

o A PLUS Loan is for folks and graduate students. The parent or grad student has got to pass the credit check to be eligible for this loan. Usually, interest rates are higher. This loan allows the parent to form the use of the entire cost of the school fees like tuition, room, and board.

2020 Guide to the William D. Ford Act “Complete forgiveness of Federal Loans”

Table of Contents

The US government initiated several programs to help students in financing their education through different loan programs. Overall loans can be classified into two groups: Federal Loan programs and Private Loan programs. The second class programs are narrower and mainly speculated for specific students regarding their field of study. Many of them finance future farmers, bankers, and public workers. They offer a loan in diverse interest rates and trying to implement regulations that everybody is consent. William D Ford Act is one of many federal loan program and is called with different names such as Direct Loan, Stafford Loan and Ford Loan in various universities. The idea of the program is that the US Department of Education gives a determined amount of money. The pros of the William D Ford Act is that it is directly linked to the Department of Education.

This regulative party is the main contractor in every agreement you make.


Almost every single high school student would love to continue his education in a bachelor degree, if not in a master degree. But unfortunately, not every one of them can afford the cost of this education. All accredited university students can be eligible and obtain up to $31.000. The William D Ford Act has two parts of the subsidized, and unsubsidized part and each kind have own terms and conditions.


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