What Is It All About?
It is seen that an average student graduates not only with a degree but also with also a debt amounting to nearly$20,000. Now that’s a huge amount even if the student lands with a good job. Therefore, it is best that you start thinking of student debt consolidation even while you are in the college so that you can repay your debts as soon as possible. The government is also keen to help you in this matter, so they offer you this student federal loan consolidation program. The loans that you have taken have fluctuating interest rate, but the new loan offered by the student federal loan consolidation is fixed. Hence, it helps you to save a lot of money per month. It is very simple to apply for it and no credit card checks or other background checks are carried out for it.
Is Everybody Eligible?
Not all federal loans however come under federal loan consolidation. The loans that you can pay through student loan debt consolidation are:
Federal Stafford Loans (Subsidized Or Unsubsidized)
Federal Direct Loans (Subsidized Or Unsubsidized)
Federal Perkins Loan
Health Professions Student Loans
Nursing Student Loans
Federally Insured Student Loans
Auxiliary Loans To Assist Students
Federal Supplemental Loans For Students
National Direct Student Loans
Health Education Assistance Loans
Federal Parent Loans For Undergraduate Students
Loans For Disadvantage Students
Beside this, your loan amount should be more than $7,500 and you should not be in a graduate school. However, do not be too worried over whether you are eligible or not, just apply to Federal Student Loan Consolidation, a part of Federal Family Education Loan Program, and your lender will verify all facts for you.
What Happens After I Have Applied?
After applying for federal loan consolidation, your lending company will contact your previous lenders and repay your loan amount. Then you repay your new lender at a much lower rate and over a longer time period. You also have various repayment options e.g. you can clear your other types of loan like credit card loans before you start repaying federal loans or pay your consolidated loans early without a fear of penalty. You can also get income tax benefit on the money you are paying back.
So do not delay if you are about to graduate or have just graduated. Use your grace period for going in for student federal loan consolidation and avail further reduction in the interest rates. Choose a good student debt consolidation company and take the first step toward a debt free tomorrow.
Student federal loan consolidation is an innovative way for student loan consolidation and it helps you to repay your federal student loans by merging all types of federal loans into one single loan for easy and faster repayment. When you opt for federal loan consolidation, you get not just peace of mind but have an excellent opportunity to improve your credit score. Student Loans Debt Consolidation offers more details about the process and methods of consolidating student loans.