Student Loan Consolidation Programs

Federal loan consolidation combines all student loans into one loan to manage. All federal student loans qualify for consolidation of student loans, including Stafford, PLUS, Perkins, direct loans, HEAL, SLS, professional medical student loans, NSL, and loans guaranteed by the student. The parent and student borrowers can take a federal loan consolidation, but they must consolidate their loans separately. In connection with the provision that took effect July 1, 2006, married students are no longer able to combine their loans for consolidation.

There are no fees to consolidate federal loans. Consolidation is available only after the expiry of loans in the grace period. It is not possible for students to consolidate while they are learning in college. On the other hand, parents have the right to consolidate PLUS loans at any time. Borrowers may also consolidate loans, which by default when the repayment terms are satisfactory.

Although parents and students in all of its loans to a particular lender, they may choose to consolidate their loans with various lenders. It helps them get more savings and a low rate. The minimum balance required for a consolidation loan, most lenders.

Borrowers must combine federal and private student loans separately, as the consolidation of the federal government offers low interest rates and great benefits. The interest rate is calculated by averaging the interest rates on loans must be consolidated and rounding up his eighth of a percent. The loan interest rate can be consolidated at 4.5%, 8.25% is the maximum. However, if the borrower extends the loan period, the amount of interest, he will have to pay on the loan will be higher.

There are no credit checks associated with the loan consolidation federal government. More mature. Federal loan consolidation usually reduces the number of monthly payments, sometimes by as much as 60%, by extending the loan beyond the repayment plan of 10 years standard. Maturity may vary from 12 to 30 years depending on the size of the loan.