subject: 50 % Off With Federal Student Loan Consolidation [print this page] A chance to get lower consolidation rates means, that you can negotiate about longer payment time, even up to 30 years. Note, that you cannot include federal loans with the non federal consolidation.
1. Main Terms.
When you think the features of the federal student loan consolidation, the benefits are many. It will be easier to manage one debt instead of several ones. There is no fees, credit check or application fees and you can cut your monthly payments up to 50 %.
2. Get The Payment Relief With The Federal DebtConsolidation.
This is the key benefit. By consolidating several debts into one debt and by renegotiating the terms, a borrower can save money. On the other hand the total costs of the loan during the total running time will grow, because the longer you pay, the more interests you pay. If you have a chance, you can make bigger payments as in the program without any penalties.
3. What The Consolidation Can Include?
Here is the list: Federal Stafford Loan, PLUS Loan, Direct Loan, Perkins Loans, HEAL Loans and all Federal FFELP and Direct Loans. Note, that if you consolidate federal debts with the private debts, you will lose the federal loan benefits.
4. How To Start?
When a graduate has trouble with the monthly payments, he or she should immediately contact the debt officer. Together you can research, if you can qualify to the deferment, forbearance or the repayment alternative, which is cheaper. It is wise to use the credit card as little as possible, because the limit usage can influence on your chances.
5. What Else The Loan Consolidation Can Bring?
If you go back to school, the loan deferment can be the solution. Additionally you can get tax reductions based on the paid interests and the forgiveness, if your economic situation does not allow payments. If you will pass away, the federal loan will be forgiven.
To be able to qualify, your loans amount must be at least $ 10.000 and you have to be at the grace or repayment period. If you consolidate after this,you have to pay higher interest rate. The U.S. citizenship is a must and you cannot be in a default status with any of the loans. Note, that you can consolidate the same loans only once. As to the payments, you can choose from four alternatives.
by: Juhani Tontti
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