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Final Week to Take Advantage of the “Special” Direct Consolidation Loan

June 25, 2012 | Adam S. Minsky, Esq. Articles

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In October of 2011, President Obama announced a new student loan initiative aimed at helping student borrowers better manage their debts. One piece of this initiative was the creation of a new type of federal consolidation loan, called a Special Direct Consolidation loan.

The Special Direct Consolidation loan’s main benefit is a very modest (fraction of a percentile) interest rate reduction. The eligibility requirements are, in my opinion, rather silly: you have to have at least one Direct federal loan and one FFEL loan, but only FFEL loans can be included in a Special Direct Consolidation loan. So if you’re looking to consolidate all of your federal student loans and you have a mix of Direct, FFEL, and other federal loans, your non-FFEL loans will have to be consolidated separately via a different process. Because of that, and because the benefits of the “Special” consolidation loan are modest (at best), a lot of borrowers have concluded that the Special Direct Consolidation loan is not really all that “special,” and I tend to agree.

That said, for borrowers who meet the eligibility criteria and want to take advantage of the interest rate incentive, time is running out. The Special Direct Consolidation loan is only available until June 30, 2012, so it’s now or never. To read more about the Special Direct consolidation loan, click here.

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About Adam S. Minsky, Esq.

Adam S. Minsky founded the first law office in Massachusetts devoted entirely to assisting student loan borrowers, and he is one of the only attorneys in the country practicing in this area of law. He provides counsel, legal assistance, and direct advocacy for borrowers on a variety of student loan-related matters. He regularly speaks to students, graduates, and advocates about the latest developments in higher education financing.

Books by Adam S. Minsky

The Student Loan Handbook for Law Students and Attorneys

The Student Loan Handbook for Law Students and Attorneys

Student Loan Debt 101

Student Loan Debt 101: The Definitive Guide to Understanding and Managing Your Student Loans

Student Loans for Parents and Cosigners

The Student Loan Guide for Parents and Cosigners

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asminsky@minsky-law.com
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Boston, MA 02110

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