What Is Federal Student Loan Consolidation?
Federal education loan consolidation is a refinancing program that enables you to combine multiple debts in one easy re-payment along with lower interest. This re-payment method is a great way to handle your finances that brings debt payment relief in addition to long term advantages.
What are the basic advantages of consolidating your college debts?
- Your monthly payments are chop up to 50 percent
- There are no costs, application charges or credit checks involved
- You're able to pay only one lender instead of several
Do you know the qualifications for federal student loan consolidation?
You can basically consolidate your credits for those who have the following types of college loans: PLUS, Government Stafford, Direct, Perkins, Federal FFELP, HEAL and Immediate.
If you have both federal and private academic debts, it is not advisable to combine all of them. Consolidating your federal and private debts will disqualify a person from various federal loan repayment benefits.
How would you manage your existing student loan consolidation repayment responsibilities?
- If you're having trouble paying your monthly dues due to some economic or personal hardships, do not hesitate to make contact with your consolidation lender and notify them of your circumstances.
- You have to watch your expenses and ensure that you do not spend for unnecessary things. This can help further in managing your debt repayments.
- Use your charge card only when absolutely necessary. Using your card for spending find yourself with you paying more than the value of the item because of the card's finance charges. You can use a debit greeting card instead. This type of card will let you manage your expenses and may prevent over-spending.