Government Student Loan Consolidation Can Help With Your Debt

A government student loan consolidation is a program that allows students to consolidate outstanding education loans into a single new loan. Even if many lenders hold the loans, you can still opt for the consolidated loan.

The government student loan consolidation is convenient to students and parents since it simplifies the repayment of loan. Government consolidation loans have lower monthly payments and have flexible terms and conditions for repayment.

Students with more than $10,000 outstanding student loans are eligible for this type of program. Private student loans can also be consolidated. However, you should not consolidate federal and a private student loan. With the private loan consolidation, you cannot forbear payments if you ever have economic hardships. Private loans are not eligible in claiming for tax deductions. Also, if the borrowers passed away, federal loans are forgiven while with the private loans, loans are passed to the next kin.

It is important to consolidate federal student loans since it reduces the number of credit loans you may have. Credit check is also not required with the government student loan consolidation since the US government guarantees federal student loans.

Application for government student loan consolidation is very easy. For borrowers with $10,000 to $19,999 loan balances have a repayment period of 15 years.

Federal student loans are easier to pay and bring less long term hassle and panic if these debts are converted into Federal Student Loan Consolidation. Consolidating your loan means that all the different types of student loans you acquired will be combined in one loan.

Since federal student loan interest rates are currently at their lowest, loan consolidation actually means that the interest rate used for the whole duration of your loan is fixed.

You will be able to pay the student loan off faster than when you did not consolidate your loans.

One category you could take into consideration regarding federal student loans is availing of the FFEL consolidation loan.

This loan program helps any borrower via multiple repayment schedules. Through the FFEL loan consolidation program, only one payment is made each month. Again, refinancing student loans depends on the borrower.

The following is a basic list of some student loans that are eligible to be consolidated:

PERK - Federal Perkins Loans, formerly Nations Defense/National Direct Student Loans (NDSL), PLUS - Federal PLUS (Parent) Loans, SCON - Subsidized Federal Consolidation Loans, UCON- Unsubsidized Federal Consolidation Loans, SLS - Federal Supplemental Loans for Students (formerly Auxiliary Loans to Assist Students (ALAS) and Student PLUS Loans), SS - Subsidized Federal Stafford Loans & Guaranteed Student Loans (GSL), DSS - Direct Subsidized Stafford Loans, DUS - Direct Unsubsidized Stafford Loans, DPLUS - Direct PLUS Loans, DUCON - Direct Unsubsidized Consolidation Loan, including Direct PLUS Consolidation Loans.

By Dean Shainin

Check Out The Related Article : Student Debt Consolidation Loans

What You Should Know About School Loan Debt Consolidation

What is Student Loan Consolidation?

Consolidation Loans combine several student or parent loans into one bigger loan from a single lender, which is then used to pay off the balances on the other loans. It is very similar to refinancing a mortgage. Consolidation loans are available for most federal loans...including FFELP (Stafford, PLUS and SLS), FISL, Perkins, Health Professional Student Loans, NSL, HEAL, Guaranteed Student Loans and Direct loans. Some lenders offer private consolidation loans for private education loans as well. School Loan consolidation is among the most important and advantageous financial decisions recent graduates and former students can make.

Why Do Most Students Consolidate Their School Loans?

- To lower monthly payment amounts by up to 45%

- To give them an opportunity to build their credit rating

- To make only one student loan payment each month

The Scoop on School Loan Consolidation Discounts.

Why Lenders Offer Loan Discounts.

The Higher Education Act of 1965 sets the maximum interest rates and fees on student loans. This helps protect loan gouging by student loan lenders, making access to student loans relatively easy for those who are in need of financial aid. Nothing, however, prevents a lender from charging lower interest rates and fees. (The illegal inducements regulations prevent lenders from providing immediate rebates, which would be similar to paying borrowers for their loans. However, most lenders work around these restrictions by instituting a one month delay in rebate discounts, or by providing the discounts when the loan enters repayment)

Lenders offer loan discounts for competitive reasons. Originally the competition was with the Direct Loan program. However, with the repeal of the single holder rule, lenders are increasingly competing with each other for the highly profitable student loan market. If you currently have multiple student loans, you should get the proper information regarding consolidation of those loans.

By Christian Rogers

Check Out the Related Article : Exclusively For Students - Student Debt Consolidation Loan

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Student Loans

Student loans are often necessary for students who do not have strong financial background and in need of financial assistance.

As the student types vary, so varies the student loans available to the students. There are graduate loans, undergraduate loans, medical loans, private loans, federal consolidation loans and so on. These loans may be provided to the student or to his/her parents. Depending on the nature of your study, you can choose one.

Who offer these loans?

Both Federal and private lenders offer a student loan. See which are the loans available to the students

Federal Student Loans

Federal governments provide these federal student loans. These loans are offered to the student or to the parents.

You can simply file the Free Application for Federal Student Aid (FAFSA) to apply for this type of loan. This single form will be enough to apply for various such federal loans for students. The advantage is that the loan does not depend on your credit. The loan comes as loans or grants.

Federal Stafford Loans, Federal Perkins Loans are examples of such Federal student loans.

Scholarships and Grants

You can also get scholarships and grants. The best part is that, you do not have to return or repay them. Without any credit check, you can get these two. Federal and private lenders both can offer scholarship and grants. These are known as "gift aid".

Private Student Loans

Private student loan is another source you can rely upon. Private parties like banks, community groups, credit unions etc offer such loans. Your creditworthiness has a big role to play here in getting you a private student loan. You may also need a cosigner to get the loan. They also look into the field you are going into.

Bad credit student loans are available for the students with bad credit history. So your bad credit situation cannot stop you from getting good education. You may need help of credit counselors or financial advisers. Immediate bad credit student loan programmes are also available from financial institutions. You may need a cosigner while applying for a bad credit student loans.


By Bikash Kalita

Check Out the Related Article : Exclusively For Students - Student Debt Consolidation Loan

What Is Bad Credit Student Loan Consolidation?

With the rising costs of education, taking student loans is the only way out for most students who are keen on completing their education. Students take loans at various stages of their education with varying rates of interest applicable to them. As their education continues, these loans pile up, and managing them becomes increasingly difficult for them because of the lack of stable means of income. To help such students - bad credit student loan consolidation comes into play.

Defaulting on loans means that the credit rating of the student would slide down, making it difficult for him/her to get loans in future. The best way to deal with such a situation is to consolidate your loans into one single bundle. Bad credit consolidation makes the loan easier to handle, and the student gets the advantage of having good credit ratings and having a considerably lower rate of interest to pay.

It works by the student surrendering all his loans to a student loan consolidation company. The company repays the loans taken by the student and issues a new one for which the student is obliged to pay monthly installments.

Bad credit is the term used when a student is unable to repay his loans. It comes with a lot of disadvantages and therefore, for getting out of student loan consolidation is the best option available to the student. A student loan would help the student to have a good credit rating, making his funds much more manageable and giving him/her time to repay his/her loan.

Bad credit loan consolidation may be a bit more costly because of the student's tarnished reputation concerning the repayment of loans. However, it is still a good option to go for them since they help in taking the load off the shoulders of the student.

Check Out the related article : Exclusively For Students - Student Debt Consolidation Loan

Graduate Student Loans

The intention of providing graduate student loan is to aid the students who are not able to afford the expenses for their graduation. A number of financial institutions and banks are now offering these loans with flexible options and reasonable interest rates.

Graduate student loans- What determines the eligibility

Any student who is interested to undergo a graduation can avail a graduate student loan. Generally bad credit history or bankruptcy of the student who applies for such a loan will not be considered by the bank while approving such a loan. Likewise no credit or the slow credit of the student will prevent him from getting a graduate loan from the financial institutions.

Different types of graduate loans

A student who is thinking of availing one should be aware of different types of such loans available to him. If he is capable of affording the other expenses of graduation excluding the direct expenses of graduation, he can avail a loan only for the purpose of making payments to the direct expenses of graduation.

Most of the banking institutions offer up to $40,500 to a student. The amount of loan sanctioned depends upon the programme of study. A student who has availed this type loan will normally be given six months grace period after the completion of his graduation to start repayment of the loan amount. Normal interest rate of this loan will be 6.8% fixed and involves no origination fees.

Graduation loans that cover all expenses connected with graduation is the other option available for a student who likes to avail a loan. These types of loans will include all incidental expenses of graduation. Though you have an option to request for a six months grace period to start the repayment, normally it will begin with the completion of graduation. When compared to the interest rate of the other student loans, a person availing this type will have to pay 8.5% fixed as the interest for the loan amount along with the 3% origination fee.

By Bikash Kalita


Check Out the Related Article : Everything You Need to Know About Student Loans