Consolidate Federal Student Loans
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When the need for a student loan arises due to the peak of financial challenges in your college years, you can usually can find the funding you need. In many cases a student will have to apply for more than one student loan before reaching graduation. Even if you happen to acquire several student loans, there is no need to panic as graduation nears. Remember that you still have the option to consolidate those loans.
There are basically two major types of student loans. First is the federal student loan which is guaranteed by the US Government through the US Department of Education. They have implemented a Federal Student Aid program as a part of their campaign to provide equal education opportunity for all aspiring college students in the country. Federal student loans are not considered direct loans to the student from the US Government. However the loans are provided by the US Department of Education and a loan servicing institution, When you need to consolidate federal student loans you have the opportunity apply for single loan to accomplish the needed consolidation. One example of federal loans used to make a loan consolidation is a Stafford loan.
As an alternative you can use private sources consolidate your student loans. Private student loans, on the other hand, are administered by privately owned lending institution. Some of the most well known private lending partners are also the leading financial institutions such as Citibank, Chase and Sallie Mae. In general private student loan rates are higher than public sector loans. However there may be more benefits in terms of payment schedules, payment deferments and longer loan repayment schedules.
For those who have incurred a number of federal student loans, the problems of managing the loans can be a problem for some people. As a result many wise student borrowers may opt to consolidate federal student loans in order to better manage their finances and save money.
Once a student has decided to consolidate their federal student loans, there are conditions that must be before they can qualify. First is that they should have more than one federal student loan. Next is that students should be in good standing with each of their existing loan accounts. This means they are either in their six-month grace period or they have already made three monthly repayments for each of the existing loans.
Under the wing of a federal student loan, there are also distinct differences between a subsidized and unsubsidized federal student loan. Although they can still be merged into one loan account, iIt is important to know the type of loans you have before you apply to consolidate your federal student loans.
It is obviously very important for the student to do their research prior to applying to consolidate their student loans. Only then will the student be able to make an informed decision. In many cases a student loan consolidation will save you money and reduce the stress of student loan repayment. Federal student loan consolidation is a wise investment in the future.
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Help answer the question about student loan
What are the best private student loan consolidation companies?I am getting ready to pay back my Sallie Mae student loans and they are expecting me to pay approximately $500 per month for my private loan. The only other alternative they gave me for a lower monthly payment was the Interest Only option, which I have heard is a horrible choice. Given today's economic condition and the difficulty of college graduates finding jobs, I don't know how they can expect people like myself to pay $500 per month. Are there any private consolidation companies out there right now that can significantly lower my monthly payment?
Thank you!
About Author
James Kesel, MS, is the publisher of the Student Loan Consolidation Advice website at http://www.student-loan-consolidation-advice.com. Providing important information on Student loans and student loan consolidation including how to consolidate federal student loans
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As far as I know consolidation is only on govt loans you cant consolidate a private loan.
Consolidating your Private Student Loans, which is not exactly a SELF Student Loan but is similar, is a very good idea; however, I would advise against combining the loan types together.
Under the FFELP Consolidation Loan Program SELF Student Loans cannot, by law, be included in a Federal Consolidation. If you were to combine your Federal Student Loans with your SELF Student Loans you would lose all of your Federal Benefits that come along with your Federal Student Loans.
Your Federal Benefits are standard on all Federal Student Loans, some which include: unlimited in school Deferment, Federal Subsidies on some loans, interest paid being tax deductible, and 3 years of Forbearance and Deferment. If you were to combine your Federal Student Loans with your SELF Student Loans you would lose all these benefits. For more information on your Federal Benefits please visit the source below.
The disgusting thing is that it’s not just peer pressure to get into the debt factory known as college. It’s government, parent, and family pressure as well so pitifull.
If you have facebook, there is a group with 200+ thousand members called: “Cancel Student Loan Debt to Stimulate the Economy”
There is also a petition which you can find there.
You can't consolidate private loans with federal ones. Sorry. Your rates will be higher than what you are paying on that federal loan anyway. It is not in your best interest to consolidate for that reason. Just put your payments on auto draft so you don't have to worry about making 3 payments. Most of the lenders will give you a break in interest if you do this.
Good luck.