Facts About Consolidating Student Loans | Student Loan | Federal Student Loan | Parent Plus Student Loan

College Students Using Student Loans to pay for school may wind up with one or more loans for every semester of school. Graduate students using student loans can experience the same thing. In this case, it is often worthwhile to consider a loan consolidation. Facts About Consolidating Student Loans most Federal Student Loans can be consolidated, including both subsidized and unsubsidized Federal Family Education Loan (FFEL) and Direct Stafford Loans, FFEL and Direct PLUS Loans, Supplemental Loans for Students, Perkins Loans, Nursing Loans, and Health Education Assistance Loans.

Some existing Student Loan Debt Consolidation 2016 may qualify for further consolidation. Consolidation can be completed through the United States Department of Education.Consolidation is often worth doing, but it is important to understand its effect on payoff or total cost. Consolidation will normally result in a lower monthly payment, but this is because the term of the consolidation agreement is extended beyond the terms of the underlying loans.Consolidation may extend to thirty years for payoff, whereas the underlying loans may have terms of ten years or less. The monthly Student Loan Repayment will be lower, but the total cost will be higher. With a longer term, more monthly payments will be made and more interest will be paid.

Student Loan Consolidation | Loans At Low Interest Rate | Process | Consolidation Loans After Graduation

Consolidation may even double the total interest expense on the loans repaid. A borrower may also lose benefits offered under existing contracts. These can include interest rate discounts and principal rebates, and these benefits can significantly reduce the cost of borrowing. If a student goes through consolidaton, there will probably be no such benefits. Student Loan Consolidation offers a number of important advantages. First of all, there will be only one loan and one lender to work with. Also, monthly payments are normally reduced, even if the Student Loan Repayment term is extended. The student will also have multiple repayment options, including payment plans made contingent on the student’s changing financial circumstances. Students can change plans at any time. A contract in default can still be consolidated, but joint consolidation is no longer available.

Consolidation is free, and there is generally no minimum amount needed to qualify. A student is normally eligible to Consolidate Loans After Graduation, after leaving school, or after reducing enrollment to below half time. Students can apply online, by telephone, or by mail. The application is fairly detailed, and will require the student to compile all loan and payment records. The student must apply for a PIN from the United States Department of Education website. The application can be completed online, with the student electronically signing the promissory note. After the application is submitted, it will be processed and completed by the Department of Education. In all, the application process normally takes sixty to ninety days.

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