Student Loan Consolidation - Detailed Facts and Guidelines to Follow Before Applying

Student loans are without doubt a great financial help for those who can not afford to finance their education. However, these multiple loans students with overwhelming debt burden will soon after her graduation from college. Writing more than a repayment check each month, at the beginning of a career that is almost impossible. In most cases, causes an error to make more payments within the stipulated time, the debt to accumulate. Therefore, keeping the interestEscalation and the student falls into the debt trap!

If you want to avoid this situation in future, you should look for a student loan consolidation, which may allow you to merge all your current loans into a single loan with lower interest rates and very flexible repayment plan. However, before the application is not, there are some important facts that you should be aware and should observe a few guidelines:

1) If this option is Right ForYou?:

You should opt for loan consolidation if and only if you find it difficult to have the monthly repayments of loans in your current time to make. In the event the total balance amount left on all loans is very less and you will be paying close to starting it soon, do not opt for consolidation, because it might not worth it at all.

2) Interest rates:

The interest rate on the loan is consolidated by the average of the rates of all estimatedYour current loan and complement it to the nearest 1/8th of a percent. The maximum interest rate is 8.25 percent. Furthermore, the interest rate and not increase with time. You can also use online mortgage calculators to calculate your interest.

3) Redemption Amount:

- If you want to reduce your monthly repayment amount and cost savings when consolidating your loans, it is necessary to extend the repayment period of the loan. By expanding yourRepayment plan, you can even reduce your current monthly payments by 54%.

- Normally, the repayment period is 10 years, but as long as 30 years may be extended. However, this depends largely on the balance amount that you are bundled.

- Although the extension of credit is an advantage, you have to pay more in interest if you are a little longer to would repay the loan in full. But the good news is that here pay no prepayment penalties if you chooseto repay the loan early.

4) Eligibility:

The following criteria should be met to qualify for loan consolidation:

- If the loans from at least two lenders
- Your current student loans were not previously consolidated
- The total amount of the loan balance on all loans should be consolidated more than $ 7,500
- You should be in your six months grace period of your loan after graduation orYou should began the repayments.

5) Loan Approval Process:

The entire loan consolidation process usually takes about a month. Sometimes you might have to wait even longer than 45 days. Therefore, it is better to plan it accordingly.

6) types of loans, it consolidates:

- Direct subsidized and unsubsidized loans
- Federal subsidized and unsubsidized Federal Stafford Loans
- Direct PLUS Loans and Federal PLUS Loans
- Direct Consolidation Loans and Federal Consolidation Loans
- Guaranteed Student Loans
- Federal Insured Student Loans
- Federal Supplementary Loans for Students
- Additional Loan to Assist Students
- Federal Perkins Loans
- National Direct Student Loans
- National Defense> Student Loans
- Health Education Assistance Loans
- Health Professions Student Loans
- Loans for disadvantaged students
- Nursing Student Loans

7) The election of the Lender:

- If all the current loan was obtained from a single lender, it is better to consolidate with the same lender.

- Alternatively, you can get the student loan consolidation, either through the U.S.Ministry of Education or through a financial services provider that is registered in the Federal Republic of Family Education Loan Program.

Thus, with the help of the above facts and guidelines you the best deal on a student loan consolidation come at the right time from the right lender. Education loan consolidation is a simple way to obtain relief from overwhelming debt, and must be taken into account to ensure a secure future.

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