Student Loan Consolidation - A Solution to Student Financial Problems
The process of student loan consolidation is getting very popular and common these days among the students. There are many organizations offering these services for the benefits of students. This helps the students to pay the education fees easily and in a cheap way.
Various student loan consolidation programs are scheduled, in which they give counseling for applying and managing debts. Loan consolidation process involves bundling of different loans borrowed by the student, to cover their education expenditure to a single loan. With this, they have to pay one monthly payment instead of different payments and to a single lender.
The rate on which the interest is charged is fixed and is calculated by taking up the weighted average of the interest rates of the loans that you are willing to consolidate, which are further rounded up to the nearest one-eight of one percent or 8.25, which ever of the two is less.
Am I Eligible For The Loans?
It is must to study the eligibility criteria before applying for the student loan consolidation. Some are mentioned below:
You are dealing with more than one lender at the time of applying loan consolidation.
Must have eligible loans of more than $7500.
You do not have any student loan consolidated until date or have gone back to school due to some reasons and have acquired new student loan.
In case you have started repaying your loans or are in six month grace period following graduation.
Consolidation of loans is an easy task and can be easily availed by students and even by their parents. For the student debt consolidation, you can contact any bank or credit union that deals with Family education loan program or directly from the U.S. Department of Education. No matter from where you get the loans consolidated, the terms and conditions for applying the loan are similar everywhere.
Before doing research and applying for student loan consolidation, it is important to know the loans that can be consolidated. The list of such loans is below:
Guaranteed Student loan
Nursing Student Loans
Direct Subsidized and Unsubsidized Loans
Direct Plus Loans and Federal Plus Loans
Health Education Assistance Loans
Health Professions Student Loans
Auxiliary Loans to Assist Students
Federal Subsidized and Unsubsidized Federal Stafford Loans
Federal Insured Student Loans
Federal Supplemental Loans for Students
Federal Perkins Loans
Loans for Disadvantaged Students
National Defense Student Loans
National Direct Student Loans
To sum up, you should choose the best option and the best times for getting the loans consolidated, because it can be done once unless you move back to school again or take any new loan.
Article Title : Student Loan Consolidation - A Solution to Student Financial Problems
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How EdFed Helped others!
Thank you, and I definitely will refer anyone that needs loan consolidation. - Kristie B. Los Angeles, CA
Student Loan Consolidation Info - How to Choose the Right Loan Company
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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.