The Four Federal Student Loan Consolidation Plans

Anybody studying in the United States and owing a student loan is eligible for federal student loan consolidation plans.

Federal student loan consolidation plans are applicable for all students whether you are still in school or a recent graduate or already into your new career. If you currently have several student loans, it is easier if you use federal student loan consolidation to consolidate them into one loan payment thus making it easier to manage.

There are four kinds of federal student loan consolidation to choose from:

* Standard Student Loan Consolidation

The maximum student loan period is 10 years and the payment amount per month is fixed. This type of plan is suitable for students who can afford to pay a fixed amount per month. The interest rate would not be a big factor in huge student consolidation loans. This is easiest for those on a budget.

* Extended Payment Plan

This type of plan is similar to standard student loan consolidation except it has a longer repayment period of between 15 to 30 years. The repayment period is dependent on the student loan amount.

* Graduated Payment Plan

This type of plan is suitable for students still schooling and can only repay the student loan when they have a job after they graduated. The payment period is between 15 to 30 years. The payment amount per month starts low and increases steadily every two years.

* Income Contingent Payment Plan

This type of plan is complicated and is based on the student's income level over a period of years. It is also based on the family's annual gross income, other loan amounts owed, other assets, mortgages etc.

Most student usually choose graduated payment plan or the extended payment plan for their federal student loan consolidation

The Background Of Student Credit

This article will explain the reasons why you should begin building your credit as a student. Whether you are taking night classes or are going to school full-time, this article applies to you. It is very often stressed that any young person who wants to get ahead should attend college. What is not stressed and is very important as well is to establish credit.

To give a little background on credit, you and everyone else in the United States who has a Social Security number and is over the age of eighteen will have a credit report. You may have never had credit in your life but you will still have a credit report. This credit report will often show as blank with no credit but a credit report is still kept.

Credit is not something to be afraid of but it is merely a reflection of your financial history. There are many factors which go into your credit report and the following sentences will explain what these are. Your credit report will show any open credit cards you have along with loans you have taken out. For each open credit account such as a credit card or a loan, there will be a history of this account. It will tell what your account limit is along with what your current balance is.

It will list your monthly payment as well as your payment history. With payment history, this is an indication if you pay your bills on time. If you do not pay on time, this is a negative and causes your credit score to go down. This goes in as either usually thirty, sixty, or ninety days late. If you have not paid your bills and had a company file for collections, this can show on your credit report as well.

There are other factors but these are the main ones. The credit report shows that you are paying your bills on time and that you manage your accounts correctly. If you ever apply for a credit card or want to buy a car and need to take out a loan, a loan officer will pull your credit. He or she wants to make sure that if he or she lends you the money that you will pay the money back to them.

With your credit report, there is a score associated with this and the number depends upon what credit bureau you are talking to. There are three different credit bureau agencies and these are Equifax, TransUnion, and Experiean. With each of those three credit bureaus, your respective score will fall within a range and this will determine what interest rate you will pay when borrowing money.

The more you pay your bills on time and manage your credit accounts responsibly, the higher your credit score will be. This will allow you to get the lowest interest rates. If you don't manage your credit responsibly, you will have a lower credit score and will have a higher interest rate. It is simple when you think about it: the lower the credit score, the riskier you are and the bank or loan company needs a higher interest rate to offset that risk.

See how it is important for your student credit when thinking about what you want to do with your future. Managing your credit will save you hundreds of thousands of dollars in the long run because you will receive lower interest rates. This article has given a background on credit and showed you why it is important to start this process young rather than old.

Student Loans

College is not cheap. Although there are many ways to pay for the education it usually involves some form of loan. The best ones are from parents because the payback time and interest rates are always much better. Since this source is not always available, the federal government has a program that will. This is the federal student loan program.

The most popular federal student loan program is the Sallie Mae fund. This program arranges loan through private institutions at a much lower interest rate than is otherwise charged. Application is usually done through the financial aid office of the schools. The amounts lent are based upon the applicant's financial needs as well as the fees and tuitions charged at the educational institution.

This loan, like most grants and scholarships takes into account both the student and his families financial liabilities. Most of the loans of this type are paid directly to the schools. Once the school has deducted the tuition and fees, a check is given to the student for the purchase of books and other supplies necessary.

Other sources of loans are banks and credit unions. These are private institutions and will base the amount of the loan upon the person's credit rating. Some of requirements may include collateral to ensure payback. One of the most common forms of this collateral is a second mortgage. For young borrowers, many financial institutions will require a parent or guardian to co-sign the loan.

The terms of most of these loans signify that payback is to start upon graduation or after a six-month grace period from graduation. Should the student decide to go on to an advanced degree, most loans will be again deferred until the degree is obtained or other arrangements are made. These requirements will vary from institution to institution.

Student Loans For Graduate Students

For those who want to continue their education into the post-graduate level, there are still loan options available. The biggest ones are the same as undergraduate loans, the Perkins and Stafford Loans. Another resource is to look to private organizations for graduate loans. Below is a brief summary of the loans available to graduate students.

GOVERNMENT GRADUATE LOANS

Government graduate loans differ from undergraduate loans really in name only. So just like undergraduates, graduates have the opportunity to get a Perkins or Stafford loan from the government.

1) Perkins Graduate loan

A Perkins graduate loan is available to students who demonstrate financial hardship. It has an interest rate of only 5 percent and can finance up to $4,000 of the graduate student's education. For graduate students who are adversely limited economically, the Perkins loan is one of the best options.

2) Stafford Graduate Loan

Stafford graduate loans are available to any graduate student regardless of their financial situation. Two types of Stafford graduate loans exist: subsidized and unsubsidized. The difference between the two types lies in who pays the interest. For subsidized Stafford graduate loans, the government pays the interest. Students pay for the interest in unsubsidized Stafford graduate loans, though there is the option of not having to make payments until after graduation.

To apply for either the Perkins or Stafford graduate loans, one must submit a FAFSA form to the government. When the form has been processed the government will send a SAR (Student Aide Report). This will give further instructions on how to apply for these loans.

ALTERNATIVE GRADUATE LOANS

Alternative graduate loans, also known as private graduate loans, are loans funded by non-governmental entities. Companies offering these loans could be banks, credit card agencies or any other enterprise interested in helping graduate students secure student loans.

Student Loan Repayment Tips For The Life Of Your Loans

It is often said that the most effective debt management strategy is to be debt-free. But, in order to pay for your college education, you may need to take out student loans.

Student loans are applied by many people these days. It is for the hope that student loans can greatly support their education. Well, that is primarily the purpose of student loans, but there are some instances that getting student loans is what lead people to be buried deep in debt. This is common among those who failed to repay their debts or those who actually escape from their obligations.

Now, planning for successful repayment involves a lot of considerations. The planning should start before you place and strike your pen on your first promissory note. Just as you are making a commitment to your career by way of investing time and money in higher education, you should also make a commitment to your financial future by way of effectively managing your student loans from the beginning.

Here are the most recommended tips and tactics that may help you handle your student loan debt effectively and repay the loans successfully.

Tip #1: Do Your Own Research

Always note that not all loans are the same. Some of them, such as the ones provided by the Indiana Secondary Market for instance, offer benefits during school as well as after graduation in the form of repayment incentives, while other do not. They will pay the 3 percent origination fee normally charged on Federal Family Education Loan Program (FFELP) loans, and this process actually means more money for the books, school supplies and living expenses. And, after you graduated, there is a chance that you will be qualified for reduced interest rates especially when you ready your payments up on automatic withdraw. So, with the differences in student loans, it is necessary that you do your research before signing the first promissory note.

Tip #2: Pay Attention to the Mail

Typically, every borrower receives important information regarding the student loan he or she took out. The mail usually comes in before, during and after school. So, it is somehow important that you read all of the materials you receive carefully. In case, you have questions, the source of the materials is available to welcome you with your questions. Don't hesitate to ask, and never ignore the correspondence or you may miss out a very vital deadlines or details about your loans.

Tip #3: Be Organized

When taking out student loan from a particular institution, it is always best to save all of your student loan documents and correspondences. This makes you aware of what exactly you've agreed, what is expected from you as a student loan borrower, and how much you have borrowed. At the start of the student loan process, you may find it unnecessary to keep all the documents, but when the repayment period is approaching, there is a great possibility that you may refer to some or all of these documents.

To makes things easier for you, begin by setting up an easy to use record-keeping system where you can store your student loan documents and correspondence. As you may know, there are a number of books and software products on personal finance to help you get started. Whatever you may use, whether file folders, binders, portfolios, or envelopes, it is a good idea that you set up one folder for every type of loan or account you have and keep the items sorted accordingly.

Here is what you should keep:

* Important documents like your student loan applications, promissory notes, disbursement and disclosure statements, as well as loan transfer notices. * Copies of all correspondences between you and your student loan lender, loan holder, and/or servicer, including your school's financial aid office. * Addresses and telephone numbers of your lender, loan holder, and servicer. These must be maintained up-to-date. * The name, the date and time of the conversation, as well as a summary of what you have discussed. These must be considered especially when you are speaking with anyone regarding your student loans as these may be valuable for future reference or clarification.

Also, when setting up your record-keeping system, be sure that it is comfortable to use. This means a system that you will find easy to maintain over the life of the loan. This record-keeping system must also be secured from theft or fire. Many experts also suggest that you should keep all your student loan related documents and correspondences until all the education loans you've taken have been fully repaid.

Tip #4: Be present at All Required Entrance and Exit Sessions

When you take out student loan, you will be required to complete student loan counseling sessions. This is often considered when you first obtain the loan and upon graduation. Also, it is worth noting that some schools these days offer this on-line and the sessions will not require a great amount of your time. However, they will provide you with a great deal of information on your right and responsibilities as a borrower.

Tip #5: Learn to Manage Money like an Expert

It has been said that if you live like a professional while you are in school, you will live like a student once you've finished your degree. In other words, it is important that you know very well how to handle your money while you are attending school. This will help you lessen the total amount you end up borrowing, and in turn, the amount you will responsible for repaying. Here are some of the tactics that are worth considering:

* Develop realistic budgets for while you are attending school and even after you graduate. This will allow you to borrow not more than you need, giving you a great chance to repay your loans. * Learn to live as cheaply as you can. Always remember that you are just a student. You will enjoy a more comfortable lifestyle once you've graduated especially if you lessen your borrowing while you are in school. Some of the most recommended ideas for how to be thrifty include getting a roommate, renting a movie instead of going out to the theater, as well as bringing your lunch from home instead of eating out. Be thrifty as possible. * For any credit card bills you receive, try to pay the full amount due. * Establish a budget for yourself and follow it. While you are in school, it is important that you know how to resist the urge of using credit cards or your student loan funds to purchase things that are included in your budget. Don't just buy unnecessary things. * If possible, explore work-study or other part-time employment. As often said, it may give you an opportunity for you to study or obtain valuable professional experience, other than help cover overheads.

Tip #6: Maintain at least Half-Time Enrollment

Considering a half-time enrollment is highly necessary in order for you to qualify for an in-school deferment. The half-time enrollment normally takes six credit hours. Regarding your school's requirements for half-time status, see your financial aid officer.

Tip #7: Take Advantage of Tax Savings

Some of the student who takes out student loans qualifies for tax credits. To see your own status, check with your tax advisor. The credits are actually based on your qualified tuition payments, and they can help reduce the amount of Federal tax you pay. Now, if you are paying interest on a student loam, you may also be able to take a deduction on your Federal tax return for those interest payments. Therefore, to obtain the full benefit of the credits as well as the deductions, grab the opportunity of employing the additional tax refund to pay down your student loan debt, or perhaps to handle your educational overheads.

Tip #8: Repayment Tips As you enter the repayment period, note that being aware of your student loan obligations is very crucial. This is where the student loan default usually happens. It occurs when you fail to pay back the loan as agreed or meet the other terms of your promissory note. The promissory note for each of the loans must then be referred prior to your graduation or before you leave school so that you know what your rights and responsibilities are in repayment.

Here is what you should do as you enter the repayment period: * Send your education loan payments when due every month, for the full monthly payment amount or more. This must be done regardless of whether or not you receive a bill. * Note and understand the repayment options provided by your student loan lenders. With some available options, there is a possibility that you can lessen the total cost of the loan by making a high monthly payment. Other options may even lessen your initial monthly payments and may make it easier for you to pay back your leans early in your career. * Understand the deferment as well as forbearance. In case you need them, just learn to exercise your options. * Remember that the loan consolidation and its repayment options have its pros and cons. So, understand them. * Keep your school, lender or servicer informed of your whereabouts. Contact them immediately if you change your name or address; have questions about billing statements; have problems making your scheduled payment on time; or if you want information on or application for deferment or forbearance. * Read, note and understand all the correspondence you receive from your student loan lender, loan holder, or servicer. And, respond them promptly if asked to do so. For Further Information If for instance you need further information regarding your student loans, always remember that the financial aid staff at your school is probably your most important resource. However, there are also some consult publications from federal and state governments, lenders and scholarship granting organizations, and financial ad guidebooks that are available from your local bookstore. They are great enough for you to start your own search.

Student Loan Pitfalls_ Dangerous Default

Introduction The student loans just like the other forms of financial aid are a service that is subject for repayment. However, although aware of such fact, many borrowers still fall to the trap of walking away from student loan debt which then results to series of consequences. They tend to ignore their being summoned to enter repayment usually either 90 or 120 days after separating from school or after dropping below half-time enrollment. With this, the loans remain delinquent for 270 days or become 270 days past due at any time, leading the loans to 'default" status.

Student Loan Default, Defined Defaulted student loans are actually defaults made by the borrower to the creditor of the terms and conditions of the student loan contract. It is usually caused by the act of escaping from debts, leading to unfavorable consequences on the part of the borrower. Basically, prior to the declaration of student loan default is the delinquency period. At this period, the lenders of student loans authorized under Title IV of the Higher Education Act will exhaust all efforts to find and contact the borrower.

If the lender's efforts of locating the debtor are unsuccessful, the loan will then be placed in default. It will be turned over to either the state guaranty agency or the Department of Education. And, once the loan enters the default status, the maturity date is accelerated, making the overall payment in full due right away.

The Consequences of Student Loan Default

When the loan enters the default status, several consequences are connected to it. Some of them are mentioned below: * The loans may be turned over to a collection agency. * The borrower will be liable for all the costs associated with collecting the loan. This may even include the court costs as well as attorney fees. * The borrower can be sued for the entire amount of the loan. * The wages may be garnished. * The federal and state income tax refunds may be intercepted. * That federal government may withhold part of the Social Security benefit payments. * On the credit record, the defaulted loans will be mentioned, making it difficult for the borrower to get an auto loan, mortgage and even credit cards. Note that having a bad credit record can harm your ability to find a job. * The borrower's chance to receive federal financial aid will now be impossible to happen until he repays the loan in full or make arrangements to repay what he already owe and make at least six consecutive, on time, monthly payments. * Federal interest benefits will be denied.

Aside from the above mentioned consequences, there is also some other less-obvious consequences that are oftentimes omitted from consideration. One of those could be the rule that the federal student loan borrowers holding defaulted student loans are no longer entitled to any deferments or forbearances. Subsequently, there are some instances when the loan default may force the individual to consider or take a semester off. This must be taken due to his or her inability to qualify for federal student aid as well as to afford the cost of higher education independently.

What's more, there is a great possibility for those borrowers who defaulted on their student loans to lose their professional licenses. For instance, the lawyers who possess defaulted loans may be subject to have their license to practice law disavowed. The doctors and certified public accountants would also fall into this category. Lastly, the borrowers who just ignored summons for loan repayments will become liable for all fees associated with collecting the federally financed loan. This means that the borrowers will end up repaying their outstanding debt, plus up to 25 percent in contingent fees in order to satisfy the student loan debt.

Note that this rule is actually consistent with the Higher Education Act as well as on the terms of most borrowers' promissory notes. The Collection Procedures Involved with Defaulted Student Loans Most of the guaranty agencies' stringent collection procedures have successfully deterred student loan neglect. One of the supports for this claim is the steady decrease and current all-time low of student loan default rates.

However, although the collections department is highly committed to assisting those who are in default and making repayment as simple as possible, the non-response in the borrowers' side still opens up to one or more of the following collection approaches:

*Garnishment of Administrative Wage: Under the Higher Education Act of 1965, the Department of Education as well as the state guaranty agencies may require employers who employ individuals with defaulted student loans to take away 10 to 15 percent of the debtor's disposable income per pay period. The garnishment of the administrative wage is actually a resort taken only when the debtor refuses to voluntarily repay his or her defaulted debts and may persist until the total balance of the outstanding debt is paid back.

*Treasury Offset Payments: Aside from administrative wage garnishment, the Department of Education has the right to request the Treasury Department to perform a federal offset against the federal income tax refunds as a way of collecting defaulted student loan debt. To simply put, the borrowers with loans in default status may forgo any federal tax refunds until he or she has repaid the defaulted loan.

* Legal Action: Litigation can be pursued by the Department of Education as well as state guaranty agencies as a means for collecting the defaulted loans. It means that if the debtor refuses to repay the debt voluntarily, he or she is subject to prosecution in a state or federal district court. The borrower is therefore sued for the outstanding debt as well as for the attorney and court fees.

But, these methods are usually considered as last resorts, thus need prior notice of the proposed offset. Preventing Default There are several ways that you can make to prevent the onset of student loan default. It is just somehow necessary for you to place your interest and efforts on preventing it. Here are the possible ways that you can consider: 1. Make sure that you understand your loan options as well as the related responsibilities prior to taking out a student loan. 2. Simply make your payments on time. 3. If possible, inform your lender or service provider promptly about any of the possible adjustments that may affect the repayment of your student loan. In case you move or change your address, let them know. Also, make sure that they know about the name changes, which are very possible because of marriage; graduation or termination of studies; leaves of absence as well as transfers to another institution. 4. If certain financial difficulties are encountered, try to consider applying for a deferment or forbearance on your loans. Many experts often suggest that it is much better to defer your payments than to go in to default status. Along with this, ask your lender or service provider about the available options while you are still making payments, before you enter the default status of your loan. Always note that after you default, you won't be able to get a deferment or forbearance anymore. 5. If for instance you are having trouble making your payments, try to contact your lender as they may be able to suggest an alternate repayment options for you. Some of the possible options include graduated repayment, income sensitive repayment, as well as income contingent repayment. Also note that the types of available repayment options currently depend on whether the student loan was issued under the FFELP or FDSLP or Direct student loan programs. 6. A student loan consolidation can be considered as another way for preventing student loan default. Combine all of your educational loans into one big loan as this gives you the chance to send your payments to just one lender. What's more, you may be able to extend the term of the loan in order to lessen the size of your monthly payments. 7. Simply keep records regarding your student loans. If possible, try to back up copies of all your letters, canceled checks, promissory notes, disbursement notices, and some other necessary forms in a file folder. Just be organized.

Getting Out of Default

In case your loan already entered the default status, don't worry. You still have hopes if you will just try to pay even just a little consideration on your debts. The first move to take to get out of debt is simply to make arrangements with your lender to repay the loan. It is commonly noted that once you have made six regular payments, there is a chance for you to be eligible for an additional Title IV aid.

After you have completed twelve regular payments and applied for and received "rehabilitation", you will no longer be considered in default. It is also at this time when the record of the default will be eliminated from the reports to credit reporting bureaus. And, for further information about the available repayment options that could suit your needs, just contact your lender. The financial aid office at your school should also be able to tell you the name, address as well as the contact number of your lender. They can also give you supporting help and advice about your repayment problems.

Student Loan Rehabilitation As the phrase suggests, the loan rehabilitation is a program designed to rehabilitate the defaulted student loans and return such loans to a favorable status. This program actually requires 12 consecutive monthly payments of a predetermined agreeable amount. It is often suggested that those borrowers in default status must contact their servicing agency to define the loan rehabilitation program that is reasonable to both parties. However, if a reasonable rehabilitation program cannot be reached with your lender, there is the office of the Federal Student Aid Ombudsman, which is a neutral party, designed to resolve any disputes.

Conclusion

Having said all these, the defaulted student loans are no doubt a serious problem that must be healed as soon as possible. This is for the fact that when the case intensifies, certain damages not only on the person's credit rating, but other consequences as mentioned above will greatly result like a brush of fire.

Student Loan Information

Venturing off to a University can be a wonderful and exciting experience. I certainly recall the day I enrolled for my first classes toward an English degree. WOW, was there ever a long line at the admissions office! But forget about all that hassle. No one has to deal with waiting in any lines for classes anymore. Everything is on the web now days. Just create an account and you'll be set throughout your college career. It takes all of a few minutes to sign up for courses. Now the bookstore on the other hand is a different deal altogether. You will commonly find lines heading clear out the door at the start of each quarter/semester. Oh but wait; we forgot one crucial aspect of college life. How are you going to afford all this? After all, a higher education is definitely not cheap by any means. Maybe what you need is some student loan information to get you started.

Like many college students striving for their BAs and BSs, I sought out student loan information and financial aid options. Right from the start my mother told me to apply for any and all grants I could find. She said it was free money, if I recall correctly. This is the cash you will not have to pay back with interest. Then there is the student loan process. Many of us need valid student loan information to get started with college life. With dorm or apartment fees, food, tuition and books to cover, we need all the funds we can muster. So get ready to apply for some student loans. One of the major ones that most of us tend to take advantage of is the Stafford loan. You can apply for subsidized and/or unsubsidized. I always recommend subsidized first because the government pays the interest on the loan while you're still in school. You can't beat them apples. Even though it can be difficult living the student life, there are perks set in place for you if you look for them.

Try the Internet! This is the ideal place to begin your search for student loan information. Everything you need to know is on the web. You can even pull up the fafsfa website and get started with your student loan and financial aid process right away. Find out what you qualify for and who offers the best interest rates following graduation.

Student Loan Debt Consolidation

There's no way around it. If you took out student loans to pay for college, you have to pay them back. That can be hard to do, whether you're still in school, trying to start your life outside it, or even 10 years down the line. You borrowed the money, you used it, and you have to pay it back.

What happens when that means you have to choose between paying all your bills or just those? What happens when those outstanding debts get in the way of putting money together for a house, or a car, or a family? It just doesn't make sense to walk through life incurring the debts of living while you're still dragging around the ones from school.

Fortunately, there's a solution. You still have to pay back what you borrowed, but with a student loan debt consolidation make monthly payments to just one lender.

Think of it as refinancing. The money you borrow from one lender pays off the money you owe to all those other lenders. No more juggling what's due to whom and when. Not only that, the interest rate on the student loan debt consolidation is the weighted average of those other loans, making it lower overall and bringing your monthly payment down accordingly. Some student loan debt consolidations are settled at a fixed rate, so you don't have to worry when July 1 rolls around each year that your payment will go up.

Among the student loan debt consolidation available, there are actually four different student repayment plans to research and one is bound to be just what you're looking for.

If the idea of a fixed rate really appeals to you, consider either the Standard Repayment Plan or the Extended Repayment Plan. The Standard Repayment Plan gives you a maximum of 10 years to repay, but payments are divided within that time limit at a fixed interest rate.

Extended Repayment Plans relieve the burden of monthly payment amounts still further by stretching the time to pay off the loan to between 12 and 30 years (depending on the total amount borrowed). Again, the interest rate is fixed for that time period, and the payments are lower. Be aware that over time, you will end up paying a larger amount, but the monthly payments will be easier to bear.

The Graduated Repayment Plan also allows you to spread your monthly student load debt consolidation payments over a period of between 12 and 30 years, but in this case, the amount of your monthly payment will increase every two years.

The fourth plan appeals to a number of people because it takes into account what's going on in your life. In the Income Contingent Repayment Plan, a reasonable monthly payment amount is determined based on your annual gross income, family size, and total direct student loan debt. Another advantage of this student loan debt consolidation repayment plan spreads the payments over 25 years.

If you're close to the end of your student loans, consider carefully whether taking on a new loan is worth the time and effort. However, if you still have a long time to go and many payments ahead of you - and you've already exhausted the deferment and forbearance options on your existing loans - making a fresh start with a student loan debt consolidation may actually be to your benefit.

Student Loan Consolidation

Tired from paying interest on student loans every month, afraid of the deadline of paying back loans, there is a solution of your tensions, STUDENT LOAN Consolidation. In student loan consolidation, a student may enjoy many benefits; some of them are following below.

1. lower monthly payments 2. only one monthly payment rather than paying separately 3. Student loan consolidation rates are very low, fixed interest rate cannot exceed 8.25% at any time, coupled with national interest rates at a 40-year low. 4. For the application of student loan consolidation, you don't have to offer any credit card check or processing fees. 5. the terms and payment plans of student loan consolidation are very flexible, the provider can mode them according to your financial needs 6. While you don't need to consolidate in order to take advantage of this one, you can knock an additional .25% off your rate by making your monthly payment electronically. This electronic debit option does more than save you money - it decreases your chances of forgetting a payment. 7. The option to prepay your loan at any time without incurring a penalty

Sometimes a student got confused about the qualification of applying for student loan consolidation. But now government clears that students who are still in their grace period or cannot re pay their owe money on a student loans can qualify to get student loan consolidation or those who are still in school may consolidate their government-guaranteed loans

Today in the market, there are many companies offering student loans to the college students, but when it comes to their interest rates, they are charging very high. A student has to pay interest on their loans, every month, which is quite impossible for some due to lack of money and time. When it comes time to pay back their student loans, it can be a real burden and a distraction from their career. For those, student loan consolidation is a best deal and step to follow. In this, you don't even get low interest rates, but can enjoy other facilities including grace period of six to nine months, only one monthly payments, tension-free mind etc.

Due to existence of government sector, a student has an opportunity to enjoy the offers given by the government as they are quite competitive than private. Student loan consolidation rates is fixed and cant be changed after signing the contracts and whenever student has graduated or ceased to be a full time student, he can also enjoy the benefit of grace period of six to nine months which allows him to get employed and repay their loans easily.