Direct Student Consolidation Loans .

The Higher Education Act commonly referred to as the HEA provides for a student loans consolidation program in the category of under the Federal Family Education Loan also known as FFEL Programs and the Direct Loan Program. These programs allow the bowers loans to be paid off and for a new consolidation loan is opened. These two programs help make the loan repayment easier by combining several types of Federal education loans, they are likely to have different repayment schedules and also may have been made by different lenders. As a result the interest rate may be lower than on one or more of the underlying student loans . In addition, the monthly payment amount on a student consolidation loan is usually lower and the repayment schedule is taken out over a greater length of time, longer than was on offer originally. This should result in a debt which is more affordable thus making the borrows ability to repay the loan greater.