Private Student Loan Debt Consolidation - Obtaining a New Single Loan

If you have a serious plan for student loan debt consolidation, be reminded that you private loans cannot be merged with federal student loans. This is because the low interests that we can benefit from government loans will not anymore become available if we consolidate these loans with the private ones.

Therefore, it is clearly to your best advantage if you can obtain separate student loan debt consolidation for your private student loans as well as government loans.

However, the following are some advice when wanting to consolidate private student loans:

Remember that when opting for private student loan consolidation, we are just merging all our eligible private loans into a newer single private one. So basically what we are after when consolidating is the replacement of our multiple monthly payments into a single new one. Imagine the relief that we can get with the financial stress of meeting multiple payments every month taken off us because of consolidation.

The good new when it comes to interest rates is that there is a possibility of getting a much lower rate of interest if your credit rating becomes significantly much better after you made good payments after obtaining the loans.

To cite an example, after graduation, you can try making better your credit rating by paying off your loans regularly and on time. Once your credit history has improved and increased by many points, you will be rewarded with a much lower interest once you get student loan debt consolidation from the lender of your choice.

Another way by which you can obtain lower interest rates is by making negotiations with your present lenders and see if they can work out on reducing your loans' interest rates less you consolidate your student loans to another prospective lender who can give you a better student loan consolidation offer.

If you are interested in articles and discussions such as student loan consolidation and other college loan topics, do visit us at our Student Loan Refinancing For You blog.

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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.

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Government Student Loan Debt Consolidation

Cost of Education

As a large section of the students today opt for higher education, the cost of education has increased considerably, and the students are compelled to resort to educational loans after school. So for those who are staggering under a huge credit, the government student consolidation loan is a perfect boon!

How Can a Government Student Loan Consolidation Help You?

With a government student consolidation loan, the students can combine and consolidate their existing loans into a new one, and thus reduce their monthly debt payments. With less to spend on their debt repayments, students would find it easier on their pockets.

The students get more time to repay the government loan consolidation. What's more, its interest rate is far less than that of the others. This pulls down the monthly payment amount, making it easier for the students and their parents. A student gain would most from this loan if he takes it after graduating, when his grace period is yet to end. He can thus avail of the lowest possible rate of interest on the new consolidation loan. With this loan, a student can do with signing only a single check a month. One can even consolidate private loans, but it wouldn't be possible to change the loans if he wants to go back to school.

Who can Opt For a Government Student Loan Consolidation Program?

Generally the students who have taken federal student loans are allowed to take a government student loan consolidation. It's necessary for the students to have more than one loan, and that too without any arrear on the existing loans. The students need to pass out of school before they take this loan. The time period allowed for repayment would vary according to the amount of loan consolidated.

The Loans that the Government Loan Can Consolidate

• Federal Consolidation Loans

• Federal Direct Consolidation Loans

• HEAL/HPSL Student Loans

• Parent Plus Loans

• Perkins Loans

• Stafford Loans

• And many more...

When you consolidate the federal student loans, not only would it reduce your number of loans, but will also give you a better credit score. You would not even need any credit check in this case, as the federal student loans are endorsed by the US government.

You'd find the Government Student Loan Consolidation Easy

You can seek the help of the loan counselors in your school to know what steps you need to take to applying for these loans. Application for student loan consolidation quite easy- even an email or a phone call would be enough for applying and one could consolidate his loans within one to three months of applying.

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Student Loan Consolidation Centers

A student loan consolidation centre allows you to combine several types of federal student loans with various repayment schedules into one loan with one monthly repayment.

It is best to search for loan consolidation centers which offer minimal rates of interest. A student is qualified for a maximum of 1 percent reduction on the interest rate, if he pays on time for thirty six consecutive payments. While still attending school, students having federal direct loans are able to consolidate by means of the federal consolidation program provided by the government.

Most student consolidation loans fall into two categories. They are government student loans and private student loans. Student consolidation loan centers provide loans such as federal, Stafford, professional student loans, nursing student loans etc.

The government loan consolidation centre is providing a student loan consolidation program which allows students to consolidate outstanding education loans into a single new loan. This is not limited to a single lender. Even if multiple lenders hold the loans, one can still opt to consolidate. Two popular online student consolidation loan centers are Internet student loans centre and US student loan consolidation centre. Next student is another popular student loan consolidating centre. It is offering student loan payments lower by up to 60% or more. Sallie Mae loan consolidation centre offers federal consolidation loans. The Citibank student loan corporation is giving federal and private loan consolidation. Wachovia consolidating loan centre is giving federal Stafford loans.

Students must only consolidate loans which are of variable or changing rates such as the Stafford Loans. Never consolidate on fixed-rate loans such as Perkins loans as there won?t be any financial benefit. Interest rates for college students who are already adults or on their way to sixth month grace period will be higher.

College Loan Consolidation provides detailed information on College Loan Consolidation, Private College Consolidation Loans, Best College Loan Consolidations, Federal College Loan Consolidations and more. College Loan Consolidation is affiliated with Student Loan Debt Consolidation.

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