Student Consolidation Loans

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Author:
Dean Shainin

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.

Dean Shainin is a consultant specializing in student loan consolidation. Get valuable resources, tools, information and more articles on student loan consolidation, visit this site: http://www.studentloanconsolidationtips.com

Get free valuable online tips for debt consolidation from his: Student Loan Consolidation website.

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... Taking Advantage Of A Federal Student Loan Consolidation Program Earning a college degree is one of the most important - and expensive - things you will do in your life. If you are able to attend college without having to take out any student loans, you are one of the lucky few. Most individuals have to borrow at least some of the money they need for tuition, books, and living expenses. And upon graduation, you are faced with the challenge of repaying all of those loans after the grace period ends, whether you are employed or not. That can be a hard dose of reality when you realize that not paying your loan payments on time, or not paying them at all can have grave consequences where your credit rating is concerned. That is why it is smart to consider a federal student loan consolidation program. Loan consolidation entails taking out a single loan in order to pay off several others. This is done for convenience, as you can often get a lower interest rate, and you only have 1 monthly loan payment to keep track of. It is also good for your credit history. Often, student loans are guaranteed by the United States government. With a federal student loan consolidation program, currently held loans are purchased and closed either by a loan consolidation company or by the U.S. government. Who handles the loans depends upon what type of federal loans the borrower has. The interest rates for Federal student loan consolidation programs are very reasonable. They are lower than your average bank loan. They are calculated based on the current year's student loan interest rate, and in turn calculated based on the 91-day Treasury bill (a government bond used as a debt-financing vehicle of the U.S. Federal government) rate at the previous auction (held every year in may) of the year. The interest of student loans...