|
| Federal Student Loan Consolidation | Consolidation means that you combine one or more existing education loans into a single loan. Student loan consolidation can help you to reduce your monthly loan payments. That's because loan consolidation allows you extend your repayment period from the standard 10 years to up to 30 years, depending on the amount of your student loan debt. The lower your monthly payment the more money you’ll have for other expenses. Having consolidation loan you make smaller payments over a longer period. Stretching the repayment period increases your total interest payments. The original loans are paid in full and a new consolidation loan for the combined balance is originated.
Federal Consolidation loan allows you reduce your monthly student loan payment by 53% or more.
Eligibility
• You can consolidate loans received from the Federal Family Education Loan Program and the Federal Direct Loan Program.
• Eligible loans include Stafford, PLUS, Graduate PLUS, Perkins, consolidation loans (when included with additional eligible loans), Nursing Student Loans(NSL), Supplemental Loans for Students (SLS), Loans for Disadvantaged Students (LDS), Health Professions Student Loans (HPSL) and Health Education Assistance Loans (HEAL).
• Default student loans may not be eligible for student loan consolidation.
• It is possible to consolidate your federal student loans during your grace period, or while you are in periods of repayment, deferment or forbearance.
Characteristics
• You can choose any of flexible repayment options.
• You can get life-of-loan servicing.
• There is no penalty for prepayment.
• No credit check is required.
• No application fee is required.
• The main advantage is that you can save hundreds, even thousands of dollars over the life of your loan.
Loan limit
If you want to consolidate your loans, they must total at least $5,000
|
|
