Several types of the Federal Student Loan Consolidation are available for you and it is your option depending on your requirements and budget. There are for example the Federal Stafford Loan Consolidation, the Federal PLUS Loan Consolidation and also the Federal Direct Loan Consolidation plans. In addition there are the Perkins Loans, Heal Loans and FEELP loans etc that you could avail.
One thing that you should bear in mind is that a person who obtains a private loan consolidation plan to get out of the loan burden will not be eligible for Federal Student Loan Consolidation plans any more.
The Stafford Loan Consolidation Plan is one of those fixed rate programs of refinancing that consolidates all your existing loans into one. The question obviously is about the benefit of such loan consolidation. A recent study report has established that Stafford Plan could save you money by reducing your loan payments by 53%. For exact calculation of the savings you earn you can take the assistance of one of the online calculators available.
Informative websites online can provide you with the desired information relating to the Stafford Loan Consolidation. They provide you with step by step guide in processing the loan consolidation. Conversely you can opt for the ready made information packet.
Your Stafford loan consolidation requirements
To be eligible to avail the benefits of the this you must not be a defaulter of loans. You also should have graduated or enrolled less than half the time required. Once you are found to be eligible you can extend your loan periods up to 30 years thereby reducing your payments and enhancing your earnings.
Like most other student loan consolidation plans the benefit of Stafford plan is to reduce your monthly payments and interest rates. You pay only one consolidate installment towards your outstanding dues once you enroll under the plan. In any case 53% reduction in payments and 06% savings in terms of interests is huge saving that could be beneficial in creating assets and wiping out the loans.
Plus Student Loan Consolidation plan is more practical and enables you to consolidate your federal loans obtained for the education of your children. All outstanding dues now become a single loan. Benefits of Stafford and other plans like reduction in premiums, extension of period of repayment to 30 years etc are also available under this plan.
The best benefit that you derive with the Plus Student Loan Consolidation plan is reduction in the interest rates by 25% instantly. This will result in huge savings and you will be able to clear up your loan burdens much faster with additional savings created.
Your requirements for being eligible for this are that you must have a minimum of $20,000 as the PLUS loans. In addition you must have received the entire disbursements involved in the current year so that you do not have to wait for your son or daughter to complete their graduation.
Therefore your College Loan Consolidation plan should be such that you get the best consolidation loan student and pay the minimum deriving the maximum of the benefits.
Article Title : Your Options For a Federal Student Loan Consolidation Plan
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!
Consolidating my federal loans reduced my interest rate and my monthly payments by $512.36. Now I can confidently say that I am on my way to a debt-free future. Thank you so much EdFed! - Daniel N. Columbus, OH
Student Loan Consolidation Info - How to Choose the Right Loan Company
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.