College Loan Consolidation, Federal Loan Consolidation, Private Loan Consolidation, Student Loan Consolidation

America's Top Student Loan Provider




How To Fully Understand Student Loan Consolidation
Student loan consolidation means paying off or refinancing multiple loans with one new loan. To place it in simpler terms, student loan consolidation is gathering all your debts from various creditors and then tying them together under one, single creditor. It is just a matter of taking one big loan to pay off the other smaller loans. In return for this service, the consolidator sets the interest rate of the consolidated loan based on existing legal parameters.

Student loan consolidation is not much more different than credit card debt consolidation or any other debt consolidation activity. As a matter of fact, it means the same thing. For people with multiple credit cards, they simply consolidate all their credit under one credit card. This makes keeping track of payments easier. At the same time, creditors eagerly welcome your business by offering lower than average interest rates and free sign-ups.

In the internet alone, there are hundreds of businesses that specifically offer student loan consolidation. Open up another browser to take a look at some of their websites. These companies offer different interest rates. Some of them will offer free sign-ups while others will charge a minimal sign-up fee. Again, this is really no different from other loan consolidation programs. A loan is a loan whichever way you look at it.

Let's take a more detailed look at student loan consolidation. Interest rates for student loan consolidation stand at 3.2 to 4.5 percent on average. Some creditors may offer lower or higher rates than those mentioned here. Other creditors also offer a rebate of up to $1,800. Creditors also advertise a reduction of payments that range anywhere from fifty to sixty percent. A 1.75 percent total discount on federal rates after twenty four months for federal student loan consolidation is also being offered by another creditor.

The only significant difference between student loan consolidation and general credit consolidation is the fact that a student loan is guaranteed by the United States government. Interest rates are based on the 91-day Treasury bill rate established during the last day of auction in May of each year. A student may consolidate a loan once, and only once, with a private lender. Thereafter, any other consolidation is to be made direct with the Department of Education. If the loans being consolidated carry different interest rates, an average is computed to come up with the new rate. Re-consolidation does not change the interest rate of the previous consolidation. There are no fees for student loan consolidation. Instead, the government subsidizes the private lender for student loan fees.

Student loan consolidation is also a big help to a student's credit rating, assuming of course, that the student is responsible enough to keep up with payments. Usually, most federal student loan companies submit reports to credit bureaus. However, there some companies that do not submit reports. If you, as a student, would like to use your consolidated student loan as a basis for your future credit rating, it is highly suggested to select a creditor that submits credit reports to the credit bureaus. Having an existing credit record will be a big help in securing future credit when your schooling is done.

With all these details and selections to choose from, it sometimes becomes dangerous to actually apply for a student loan consolidation program. There are several websites than can be used as helpful references when it comes to choosing a legitimate creditor. A couple of these websites are www.product-reviews.org and www.consumer-protection-company.com.

Rebates and federal rate discounts aside, the real target of student loan consolidation, or any other debt consolidation program for that matter, is to lower the interest rates of the various, existing loans. The convenience of a single billing statement comes as a secondary benefit. Student loan consolidation is a great help if you are seriously considering taking charge of your time and finances. If anything else, it lessens the amount of worrying which translates to an ability to focus on more important academic activities.

In the interests of convenience and peace of mind, consider the benefits of signing-up for student loan consolidation. The student loan consolidation application process is as easy as eating pie.



 


Article Title : How To Fully Understand Student Loan Consolidation
Comment not found for this article.
 
Comment

Related articles
• A Student Loan Consolidation For the Student in Debt
• Consolidating Student Loans - The Major Benefits
• Consolidating Student Loans - Why it Makes Sense
• Student Loan Consolidation May Be The Answer To Your Debt Burden
• Get Debt Relief By Consolidating Your Student Loans!

Share this story:
  • BlinkList
  • blogmarks
  • del.icio.us
  • Digg
  • Facebook
  • Google
  • Sphinn
  • MySpace
  • NewsVine
  • Simpy
  • StumbleUpon
  • Technorati
  • E-mail this story to a friend!
  • Print this article!
  • Faves
  • Furl
  • Netvouz
  • Slashdot
  • Spurl
  • Yahoo! Buzz
 



EdFed introduces… Awareness… Learnal
At, EdFed, we proudly introduce 'articles on student loans' and 'Learnal - the journal to learn from', our free newsletter on student loan management, which is sure to keep you informed of the latest events and happenings in the student loan market. To receive your copy of the above just use the RSS feed below and add this to your "My Yahoo", blogs, newstickers, and other similar channels accepting distributable content.
Click here to sign up for our Weekly Newswire now!

How EdFed Helped others!
I kept putting off consolidating my student loans until I graduated. Then I saw that EdFed encouraged me to start an application at least 6 months before graduation so that I could reserve my consolidation. I called and had my application signed in less than 15 minutes.
- Alisha P.  Salt Lake City, Ut
* Your Name: * Your E-mail Address:

We respect your privacy.
* Your Friend's name: * Your Friend's E-mail address:
Include a Message:
+ Privacy Policy

Student Loan Consolidation Info - How to Choose the Right Loan Company

This column is sponsored by Granted, America's top job search engine. The Career Resources column is presented by Granted, America's leading job search engine dedicated to getting people jobs.

Education is one of the most basic right of any human, but with the increase in prices and the costs involved in education this has made these rights turn into a privilege which very few can enjoy. Any normal person today in the whole of United States has to take an education loan at one point of time to pay for their education fees.

read more
CONSOLIDATION NEWS
Schools Will No Longer Receive Paper FAFSA Forms
(September 20, 2007)

news desk
CALCULATORS
Stafford Loan Payment Calculator
PLUS Loan Payment Calculator
Loan Consolidation Payment Calculator
Articles
Calculators
FAQs
Glossary of Terms
Loan Comparison Chart
Scholarship Search
Our Select 5/Graduated Payments repayment option allows for interest-only payments for the first 2 years of repayment. In the third through fifth years, payments increase to include a portion of principal. In the sixth year, payments increase to level installments of principal and interest payments for the remaining term of the loan.
US School Directory
Comprehensive List of Schools at which EdFed Assists Students.
EdFed is a FFELP lender with lender identification number 834241.
© Copyright 2020 EdFed. All Rights Reserved.

Home · About Us · Contact Us · News · Sitemap
Career Advice · Tell a Friend · Privacy Policy · Resume Service
Resume Distribution Service · Post Resume · Job Search Course
EDFED NEWSLETTERS
Sign up for the latest news on student loans.
Email Address:
+ Most Recent Newsletter
+ Newsletter Archives