Start Consolidating student loans and default

Consolidating student loans and default

Those four loan programs account for 80% of the federal loans made for college students.

Stafford Loans are more common than Perkins Loans, the other type of federal student loans.

Money for these loans comes directly from the federal government in a program called the Federal Direct Student Loan Program (FDSLP).

If you have an unsubsidized loan, you’re responsible for paying off all the interest.

If the combination of paying off credit card debt, auto loans and student loans becomes overwhelming, a debt consolidation plan could ease your financial difficulties.

Freshmen can borrow up to $3,500; sophomores $4,500; and third-year students and beyond can borrow up to $5,500 in subsidized loans.

You cannot accrue more than $23,000 in subsidized Stafford Loans throughout your undergraduate studies.

The average student loan debt for 2016 college graduates who borrowed for college, was $37,172 and 70% of the graduates left school owing money.