Consolidating stafford perkins loans

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Cecillia Barr is a graduate of the University of Central Florida.

Should the interest remain unpaid while a student is in school, that amount is capitalized or added on to the total loan amount that must be repaid over time.

Because Perkins loans are available only for the financially neediest students, these loans have the most opportunities for loan forgiveness.

If you fit the criteria for loan forgiveness, all or part of your debt is cleared.

Borrowers have a fixed interest rate of 4.45%, and repayment does not begin until six months after leaving school at least half-time.

Direct Subsidized loans that are in deferment while a student is still attending school accrue interest, but this is paid by the federal government, making them more affordable for borrowers who have a financial need.

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