Student Consolidation Loans

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Author:
Angela Rogers

A student loan debt consolidation loan allows you to combine your federal student loans into a single loan with one monthly payment. The repayments of a student loan debt consolidation loan can be significantly lower than the payment required under the standard 10-year repayment option. Under the Federal Family Education Loan (FFEL) Program, banks, secondary markets, credit unions, and other lenders provide the student loan debt consolidation loan. Under the William D. Ford Federal Direct Loan (Direct Loan) Program, the federal government provides the student loan debt consolidation loan.

Most federal education loans are eligible for inclusion in a student loan debt consolidation loan, including subsidized and unsubsidized Direct and FFEL Stafford Loans, SLS, Federal Perkins Loans, Federal Nursing Loans, and Health Education Assistance Loans. However, private education loans are not eligible for inclusion in a student loan debt consolidation loan.

To find out which loans can be included in a student loan debt consolidation loan contact the Direct Loan Origination Center's Consolidation Department if you're applying for a direct student loan debt consolidation loan. Contact a participating FFEL lender if you're applying for a FFEL student loan debt consolidation loan.

It is worth noting that you are still eligible for a student loan debt consolidation loan after you graduate, leave school, or drop below half-time enrollment. You can also get a student loan debt consolidation loan while you're in school. You must, however, be attending at least half time and have at least one Direct Loan or FFEL in an 'in-school period' which generally means that you have been continuously enrolled at least half time since the loan was disbursed. There are a number of conditions that need to be met for you to qualify for a student loan debt consolidation loan, especially if you are delinquent or in default and your loan holder will be able to give you all the necessary information.

If the same holder holds all the FFEL loans you want to consolidate, you must obtain the student loan debt consolidation loan from that holder, unless you haven't been able to get a loan with income-sensitive repayment terms that are acceptable to you. To be eligible for a William D. Ford direct student loan debt consolidation loan, you must have either a direct Stafford subsidized or unsubsidized loan that will be included in the student loan debt consolidation loan or have at least one Federal Family Education Loan (FFEL) program Stafford subsidized or unsubsidized loan.

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About the author:

Angela Rogers is the editor for http://www.debt-helper.info - Your guide to debt help and debt consolidation.

A Quick Note From The Publisher... If you like the article above, you may be interested in the following article which is also related to Student Loans... Should You Consolidate Student Loans? Students can consolidate student loans to relieve the pressure of having multiple loans, large monthly payments and higher interest rates. Are you struggling to repay your student loans? Well, you are not alone. Many students and graduates that have student loans look to consolidation in order to make them more manageable. Consolidating your student loans can be a good idea under certain circumstances. Currently, interest rates have been low but they are in fact rising. And economists tend to agree that they will continue to rise. Most student loans are based on a variable interest rate and will not be locked-in until you refinance or get a loan consolidation. The option to consolidate student loans is available to those individuals who have established good credit by paying their loans back on time. If you have missed payments or have been late then you will probably not receive the lowest interest rate but it may still make financial sense to consolidate. As a rule, loan consolidation rates are usually offered at 1 or 2 points below what your current rate is. This makes the loan more attractive and is an incentive by the lender to draw in your business. You will save each month because of the lower interest rates but it is also tempting to reduce your monthly payments and extend the life of the loan. But that can have consequences. What was a 5 year loan can turn into a 10 year loan. You can avoid this by paying off as much of the principal as possible. This will shorten the life of the loan and the amount of interest that you pay. This is ideal in the best of circumstances but for those times when money is tight you can arrange with the lender to reduce your monthly payments, even to the minimum. Student loans are like every other type of bank loan. You...