Debt Consolidation

Accrue More From Your Student Federal Loan Consolidation

It is common parlance that education in modern times is a costly affair. Being a student you might have taken a loan to meet all the educational expenses. You might have availed a federal loan or two in order to pay for your tuition fees, accommodation costs and all other expenses. for students could help you repay the loans in a very convenient and effective manner.

Know What It Means

Every average student, till the time he/she graduates is burdened with some kind of student loan or the other. Though they land themselves in getting a lucrative job their studies still stand as a liability with debt. Normally, the loan amounts to nearly $20,000 which of course is a huge amount. Hence, it is a good idea to consider student debt consolidation of loans.  It’s the government’s endeavor to bail out a student from the debt. The consolidation of the loan would ensure that the federal student loan interest rate is fixed contrary of the fluctuating interest of the student loan. This enables the student to save some money. The best part is that here are no credit card checks or other background checks in the process. This is called Federal consolidation loans for students. 

Who All Are Eligible?
However, there is an eligibility criteria in consolidation of federal loans and not every federal loan qualify for it. Following are the loans which are eligible to be paid through student loan debt consolidation:

• Federal Stafford Loans (Subsidized Or Unsubsidized)
• Federal Perkins Loan
• Federal Direct Loans (Subsidized Or Unsubsidized)
• Federal Supplemental Loans For Students
• Auxiliary Loans To Assist Students
• Federally Insured Student Loans
• Federal Perkins Loan
• Health Professions Student Loans
• Loans For Disadvantage Students
• Federal Parent Loans For Undergraduate Students
• Health Education Assistance Loans
• National Direct Student Loans

Apart from these you should have a loan of more than $7,500 and should be a graduate to avail Federal consolidation loans.  However, don’t be too fussy considering these aspects and just apply for a federal student loan consolidation or student loans refinance and the lender would verify for itself. If you fall under the desired profile a prompt loan will be given to you.

The Process Thereafter
Following the proper documentation and processing of your loan the lender company would contact your previous lenders and clear all your debts. Now, you start repaying your new lender at a rate which is much lesser than the previous one. The duration of this consolidated loan is also much longer than the previous loan. You are also provided considerable gestation period before you actually start repaying your consolidated loan. During this period you can clear up your credit card bills and other smaller dues without any apprehension of a penalty. On top of it there are income tax benefits on the money you are repaying.

Hence, do not hesitate to apply for a to pay back your student loan with further reduction of interest rates. Choosing the right one for you would be a good start while going for Federal consolidation loans.
Resource Box: In order to merge all your federal loans along with your student loan and repay them in an effective way Federal loans are the best options you can avail. It can also be an excellent source in improving your credit score.

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