The Wheels of U.S. Government

Direct Loans — Educational Loans Consolidation

Back in November 2009 I applied for a loan consolidation through the U.S. Department of Education's Direct Loans Program. Today — June 2010 — I received notice that my application had been cancelled. There are three reasons for which a loan application might be cancelled. After speaking with my current loan underwriter and the peeps at Direct Loans, none of these reasons seem to exist in my case.

The Direct Loan people will now re-contact my current underwriter, ACS. As well, my case has been referred to a Supervisor at Direct Loans. I am instructed to call back in three weeks to check on the status of my loan.

I pay just under $250 monthly on two school loans. A consolidation will reduce that monthly amount, lock in a low interest rate (presently have an adjustable rate); yet, will extend the term of my loan.

I can live with that. Or even die with that and then owe nothing more. [evil grin] My monthly Social Security benefit is from where I draw my school loan payments. It would be nice to have a bit more discretionary spending funds from that monthly stipend.