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Think of it as refinancing a home mortgage. You
consolidate all of your student loans together, and all of the
balances of your existing school loans are paid off, the balance
will go into one consolidated loan. The advantage to this is that
you have only one student loan to pay off.
Consolidating
your loans can offers many benefits such as, locking in a fixed,
lower rate for the length of your loan. This is advantageous because
it can save you allot of money over the term of the loan. Also you
will incur smaller monthly payments, which will allow you to have
more funds available for other things. Also these types of loans are
very flexible with prepayment penalties, charges and no fees. It is
important to understand that you will not need a credit check or a
co-signer for this type of consolidated loan.
The only time
you would not want to consolidate is if you are close to paying off
your current loans. However, if you are having trouble making
monthly payments and would like to take advantage of a lower
interest rate, this can be a great thing for you.
The eligibility
for this type of loan is, your loans are over $7500, you have more
than one lender, you are in the grace period or have started
repaying the loans, you have not already started a consolidation
program.
The loans below
can be consolidated:
Health
Education Assistance Loans Health Professions Student Loans Loans
for Disadvantaged Students Guaranteed Student Loans Federal Insured
Student Loans Federal Subsidized and Unsubsidized Federal Stafford
Loans Direct PLUS Loans and Federal PLUS Loans Direct Consolidation
Loans and Federal Consolidation Loans Federal Perkins Loans National
Direct Student Loans Federal Supplemental Loans for Students
National Defense Student Loans Auxiliary Loans to Assist Students
Nursing Student Loans Direct Subsidized and Unsubsidized Loans.
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