subject: Student Loan Consolidation Guide [print this page] Loan consolidation is considered a repayment opportunity for students having numerous outstanding loans. In fact, consolidation can assist you to avoid default and delinquency. In case you borrow money from some different federal and state student loan programs to cover all the cost of your college education, you may consolidate the student loans into one. Sudent loan consolidating will most likely reduce your monthly payments as well as make the repayment procedure simpler as you make one monthly repayment only.
Also, eligibility for the federal governments Loan Consolidation Program counts on the sum of money that you possess as well as the kinds of loans that you have obtained. Students should have borrowed about $5,000 from any of the provided programs:
Stafford Loans
Perkins Loans
The rate of interest on consolidated student loans is roughly 8.25% for Stafford Loans and approximately 9% for Perkins Loans. Typically, however, a student loan agency averages rates of interest from all of your outstanding loans plus uses that rate that is usually higher than 9%. The whole amount you have, interest rates, as well as the amount of the monthly payments are defined by the agency carrying your loans.
In order to consolidate your student loans, you should have started to make your payments or get in the grace period prior to repayment begins. The borrowers that are more than 90 days delinquent in repayments or that are in default won't qualify for the program. In case you qualify for and concerned in consolidation, you need to contact the lending agency to inform how much you have on your student loans and the types of loans that you own. In case you have Perkins or Stafford Loans, then the agency will get them from the government to handle all payment and collection methods.
Remember, any concerns and questions about repayment, deferment, cancellation, or borrower responsibilities should be directed to the agency carrying your loan.
