ED Working to Resolve Problems with Direct Loan Website

Updated Oct. 14, 6:15 PM ET:?Some student loan borrowers may be having trouble accessing the Department’s new Direct Loan Servicing website, www.myedaccount.com, or experiencing extended wait times at the Direct Loan Servicing Center.? We are aware of these issues and are working to address them.? We apologize for this inconvenience and encourage users having trouble accessing our website or call center to try back at a later time.? Our call center is operational between the hours 8:00am to 8:30pm ET, Monday through Friday, and our website is available 24 hours a day.

We understand that borrowers may be attempting to access their account to create a profile, schedule payments or check balances.? Please be assured that no borrower impacted by this issue will be penalized for late payments or lose any benefits to which they are entitled.? We will keep you updated as more information becomes available.

If you would like to receive an email when the Direct Loan Servicing Center issue has been resolved,?sign up for email updates from the Department of Education?here.

1. ? ? ??I’m having trouble accessing the website and call center.? What’s going on?

The Direct Loan Servicing Center is in the process of transitioning to a new website, www.myedaccount.com.? As a result of the transition, some student loan borrowers were having trouble accessing the site or experiencing extended wait times. ?We are aware of these issues and are working to address them.? We will keep you updated as more information becomes available and apologize for any inconvenience this may cause.

2.?????? What if I need to make a payment?

Borrowers may choose to mail in their payment or wait until the website is functional to make an online payment.? We understand that this issue has been an inconvenience for our borrowers. We will ensure that no borrower loses any benefit to which they are entitled as a result of this issue.

Borrowers who choose to mail their payments can send a check or money order (including their account number) to the following address: ?United States Department of Education ?PO Box 530260 ?Atlanta, GA? 30353-0260

3.?????? Will my payment be considered late?

We will ensure that no borrower is penalized or loses any benefit to which they are entitled as a result of this issue.

4.?????? Will I lose any benefits as a result of this issue?

We will ensure that no borrower is penalized or loses any benefit to which they are entitled as a result of this issue.

5.?????? If I make payments through electronic debit, will my payment be impacted?

Borrowers enrolled in electronic debit do not need to take any action. However, borrowers with an October 7, 2011 debit date may have noticed a slight delay in the drafting of the payment from their bank accounts.? Despite the drafting delay, the effective date of each borrower’s payment will be October 7, 2011.

6.?????? Should I send my payment in via mail?

Borrowers who choose to mail their payments can send a check or money order (including their account number) to the following address:? United States Department of Education? PO Box 530260 ?Atlanta, GA? 30353-0260

View the original article here

Direct Student Loans Consolidation

Direct student loan consolidation organizations vie for a student's business in this day and age when the major source of funding for a higher education is through educational lending. Every year a college attendee must reapply for borrowing, and many times throughout a student's educational career, their college lending is bought and sold, resulting in a mess of different options, a variety of payment amounts, and repayment schedules. Direct student loans consolidation can ease the burden of such disarray and allow the borrower to make just one monthly payment to one lender.

The most popular consolidating organizations are those that receive guaranteed government funding. Some private direct student loan consolidation groups have insurance from organizations up to a certain limit, and therefore must allow certain restrictions and limitations with their deferment options and repayment terms. The best organizations allow for deferment periods indefinitely while a student is enrolled in school. Some direct student loans consolidation require that a college attendee be enrolled in a degree seeking program not to exceed 4 years, while others allow a flat 3 year deferral and never more.

Government sponsored and guaranteed programs allow repeat consolidating if the student takes out another amount at a later date to pursue their education further. When this happens, a new loan is formed, including the offering of a new deferment period. This deferment period is especially essential to borrowers and could make the difference in selecting one direct student loans consolidation program over another, far more than the interest rate. Borrowers opting for a better deferment or forbearance period should stay within the government guaranteed participating lenders. These lenders offer no time limitation of in-school deferment periods, as long as the student is enrolled half time, and as long as the school participates in federal financial aid programs.

These lending programs utilizing the governmental guaranteed program do have maximum limits. These limits can be stretched into a repayment term not lasting longer than 25 years and usually carry the absolute lowest interest rates. Students choosing the government direct student loan consolidation programs need to be aware that just because the government guarantees the program, doesn't mean the government is responsible for repayment. When a Christian borrower makes a promise to pay, that promise is first to God. The Bible says in Ecclesiastes 5:4-5 " When thou vowest a vow unto God, defer not to pay it; for He hath no pleasure in fools: pay that which thou has vowed".

View the original article here

Direct Student Loan Payment

Direct student loan payments are debited from the borrower's checking or savings account by the lending institution each month on the due date. With all the stress of daily life, direct student loan payment plans take the worry and hassle out of remembering to make the payment each month. Of course, the borrower must sign an authorization form, which provides account information in order for the amount to be debited.

Having the option to pay directly will eliminate the need for paperwork. Receipts will be sent via email to allow the individual to keep up with when and how much the bills are. Also, the individual will not have to write a check or keep up with payment stubs when they have the ease of direct student loan payment. If someone is concerned about not having a paper receipt for direct student loan payments, they can keep bank statements as proof that the money was debited from the bank account. If at any time the person wishes to cancel this service, most lenders require written notice. The individual should be sure to do this in plenty of time before the next bill is due.

Many students are fortunate enough to have their parents to repay the amount owed to lenders for educational purposes. It might be the case that the parents will pay the bills until the child graduates and gets a job. At that point, the student will assume the direct student loan payments. Some lenders offer incentives for utilizing the direct student loan payment as the primary method of repayment. This service will ensure that repayment is completed on time and many lenders offer interest rate reductions if the individual is not late over twelve month periods.

If an individual takes advantage of a direct student loan payment or other such programs that will reduce the interest rate each year, they can significantly reduce the amount of interest that they will pay over the life of the loan. The easiest way to make sure the debt is paid on time is by using direct student loan payments. It is one less thing for a person to remember and they can rest assured that you are doing the right thing in paying what they owe on time. "Finally, brothers, whatever things are true, whatever things are honest, whatever things are just, whatever things are pure, whatever things are lovely, whatever things are of good report; if there be any virtue, and if there be any praise, think on these things." (Philippians 4:8)

View the original article here

Direct Student Loan

Direct student loans are low interest loans designed to help college attendees pay for education after high school and they are fairly easy to obtain. There are no credit checks, no application fees and are catered to a students needs based on the program of study. This lending is either subsidized or unsubsidized. A subsidized amount is awarded based on a financial need basis only. The federal government pays the interest accrued until repayment begins for the college graduate. An unsubsidized amount is not awarded on financial needs. Borrowers will pay the interest on the amount from the time that the funds are dispersed.

A student can choose to pay the interest in installments or allow the loan to accumulate interest. In this situation, the interest will be capitalized, added to the amount of the principal and will increase the amount repaid in the end. Paying along the way will save the most money on a direct student loan. Anyone who is a degree-seeking college attendee enrolled half-time or more in college credit classes is eligible for one. The amount borrowed is based on the program of study and how many years the borrower has completed in college. For example, a first year college attendee will be able to borrow less in direct student loans than a college attendee who has completed two years of study. Interest rates paid will be lower while a borrower is attending college. Once the education is finished the interest rate will be higher.

Many students like to obtain this lending because the interest rates are so low. There is a nominal fee to pay once a direct student loan is disbursed. A portion of this fee goes directly to the federal government to help decrease the cost of lending. Collection and late fees may also apply if payments are not made when scheduled. Amounts are paid back to the lender after a borrower leaves school, drops below the half-time enrollment mark, or once a borrower graduates. Lenders also offer a six month grace period before repayment will begin. During the grace period, a borrower will receive payment information on their direct student loans. The lender will notify the student, usually by mail of the repayment amount, current interest rate, and the date payment is expected.

"My covenant will I not break, nor alter the thing that is gone out of my lips" (Psalm 89:34). It is vital that a college attendee pay the debt on time and the full amount - not doing this can negatively impinge on the students credit report. It is possible to receive a deferment on a direct student loan under certain circumstances. For example if a student were to earn an associates degree and wanted to obtain a bachelors degree, payment would be deferred while the student is enrolled at least half time. Guidelines may vary according to lender for deferment.

View the original article here