Federal Loan Consolidation
There are three federal direct loans that are considered outstanding types of school loans: parent loans, private loans and federal student loans. Each type of loan has a specific application process and has special eligibilities. College loans should be a last resort after you have received all the financial aid through Pell Grants and scholarships.
Federal loans are offered after your Pell Grants are exhausted when you’ve filled out the FAFSA (Free Application for Federal Student Aid). Once you have completed college you may be in need of federal loan consolidation. This will help you stay out of debt and avoid extreme amounts of interest being accrued as you are trying to pay your loans back.