Student Loan Consolidation

Education today has become one of the most expensive commodities and practically every student has taken a loan or debt to complete his studies. This is not all. Along with this he has also taken other loans like the credit card loan or the car loan or even the house loan. So he’s virtually on the brink of a death trap. And if you fall into this category, then this site will definitely be of use to you. For we have a solution to help you ease your burden in the form of student loan consolidation.

Now you may be wondering what is Student Loan Consolidation. Well, it’s a method to combine all your existing loans into one and make it a consolidated loan with a single lender and a single process of repayment. The student loan consolidation not only helps you to keep a track of the various loans that you have availed but can also benefit you by saving a lot of interest which you usually have to forego for your debt repayment. We will show you how you can turn this negative aspect into a positive one.

Don’t you ever wish that you had only one loan so that you could be free from this menace at the earliest? Student Loan Consolidation is one such plan and gives you benefits also. In this plan the interest rates are considerably lower as compared to individual loans thereby helping you to save a lot. The monthly payments come at a lower rate also. The repayment system is very flexible and there are no additional charges or fees or penalties for prepayment also. You are freed from the credit check routine and does not require the signatures of others

You must be wondering the system sounds good, then how would the interest be calculated. Very simple. The interest rate is determined by taking the average of all your loans which have been consolidated which is rounded to one eighth part of one percent and it does not exceed beyond 8.25%. You can even calculate the rate yourself by visiting loaneducation.ad.gov site where you can use the online calculator. Now, since the student loan consolidation plan reduces your interest rate, it is natural that you would be saving too. And the next question in your mind would be how much?

The amount that you would save depends on the interest rate given to you and whether you want to extend your repayment process. Studies have proved that students can save up to 54%. Usually a student can repay a loan for a period up to 10 years but with the extended repayment plan you can stretch it to 30 years also. Since there is no penalty for prepayment you can repay the loan early also. Sounds good? Now the next question plaguing you might be whether you are eligible for this consolidated plan or not.
Yes, you are eligible for this consolidated plan provided you fulfil some conditions. First being, that after your graduation you should be serving a grace period of 6 months or you have begun repaying your loans. The second is that your loan amount should be $7500 in total. The third is you have several lenders. The fourth is you have not already taken this consolidation plan or even if you have, then after rejoining school you have taken new loans.

You can opt for this consolidated loan plan through any bank or financial institution which has the Federal Family Education Loan Program or even from the U.S. Department of Education.