Government Student Loan Consolidation

It is often said that education is the best investment that one can make in one's life. Although there are various student loan options but repaying them can be a tough task. However, government student loan consolidation is a reasonable option as compared to private loan offers. Many people are reluctant to take student loans because of the high interest payment.

Government Student Loan Consolidation Eligibility

Government Student Loan Consolidation can be applied by any student that have taken federal loans. Some of the requirements that must be considered are that the student should have taken more than one federal student loan. Also, a student should have a good credit rating or should be in the grace period of a post graduation course.

To make payment easier for students, both unsubsidized and subsidized student loans can be consolidated. This enables a student to pay only one payment per month.

Government Student Loan Consolidation Benefits

Government Student Loan Consolidation allows students to pay loans over a longer period of time as compared to private student consolidation loans. As a result students are required to pay only a small amount per month. The interest rate, total loan amount and repayment duration determine the monthly payment cost.

Maximum repayment duration can extend up to 30 years. It is advisable that a student should try to pay quickly as the interest rate along with the principal sum adds up to be a significant amount over time.

Some of the benefits of government student loan consolidation include low payments, low interest rate and easy payment method. With the loan, a student is not required to pay any of his previous loans and instead is required to pay only a single monthly installment. Moreover, the interest rate currently is at the lowest levels, and thus it is the best time to take student consolidation loans.

Discover the best federal government student loan consolidation programs online. Visit Ricky's federal consolidation student loan site for more information.

Sunday, July 27, 2008

Some Facts About Consolidating Student Loans

With increased demand for better education, the college and school fees have also increased. As a result, most students have huge student loans by the time they complete their studies. Most federal education loans offer an option that may reduce the burden of student loans.

The following loans come under consolidation criteria:

1) Subsidized government student loan.

2) Unsubsidized government student loan.

3) Federal Nursing Loans.

4) Federal Perkins Loans.

5) Health Education Assistance Loans.

Always keep in mind that Private student loans do not fall in this criterion.

Government Student Loan Consolidation allows you to combine all federal student loans with one monthly payment. One monthly payment after the consolidation of government student loan will be lower than the payment required under the 15 or 20 year repayment option.

Process of Government Student Loan Consolidation:

To apply for a government student loan consolidation you must fill an application form and contact the lender. To apply for consolidation, you can use online facility provided by your borrower or you can request an application form on telephone in case your borrower does not provide online facility. After receiving your completed application, the lender will request information from your other lenders. Then the borrower will receive notification about consolidation loan, normal consumer disclosures and the amount owed.

Always Consider the Cost

Consolidation is simply an option of loan repayment, which lowers down your monthly repayment but mostly it increases the total repaying amount, as it increases time period upto 30 years allowing you more time to pay the same amount. Thus, you should compare your consolidated repayment with an unconsolidated one-if there is a big difference then you should find out some other option to solve your problem. Confirm whether you are losing interest rate discounts, principal rebates or any loan cancellation benefits.

Oliver Turner - EzineArticles Expert Author
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