Student Loan Consolidation Info

Student Loan Information Info

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Listed below is a basic checklist for borrowers who are interested in obtaining student loan consolidation info. However, If you're really interested in consolidating your student loans, your first step should be to contact a qualified lender for full details in order to complete an application.

With most lenders, a borrower is given the option to either complete the application entirely online, or to request an application via telephone. After the completed application is submitted, the borrower will be asked for information on his/her other lenders to determine the outstanding amounts of all existing loans. once that has been determined, the borrower will receive notification regarding the consolidation loan, the amount owed,where to make payments (if appropriate), and all the normal consumer disclosures.

Student Loan Consolidation Info - Average Interest Rates

Student consolidation loans have fixed interest rates, that are based on the overall average interest rates on the loans that are being consolidated. A lender can provide a new borrower with the lowest statutory weighted average rate by applying the lower of the loans being consolidated, depending on when the application is submitted.

According to the Federal Student Aid program, most federal education loans are eligible for consolidation, which can include FFEL Stafford Loans, SLS, Perkins Loans, Plus loan borrowers, and Federal Nursing Loans. Keep in mind though, private education loans are NOT eligible for consolidation. A complete list of eligible federal student loans can be found at (www.loanconsolidation.ed.gov) or call 800-557-7392.

There have been changes in recent years with the Direct Loans and the FFEL Loans. The Higher Education Reconciliation Act says, the borrower of those loans who are currently enrolled in school at least half-time, no longer qualify to consolidate their loans. Repayment does not begin until six months and one day after the date the student stops carrying at least one-half the normal full-time studies - which would be determined by the school. In other words, a Direct Loan or FFEL borrower may no longer request to enter repayment early, while still enrolled in school at least half-time.

All in all, the utmost consideration should be given to what the consolidation loan will cost you. Although, student loan consolidation can lower your monthly payment, it can also increase the total cost of the loan. Consolidating loans offer lower monthly payments because the borrower is given up to 30 years to repay. In other words, more payments equals more interest. So, make sure you understand what you're signing up for by getting the correct student loan consolidation info from a qualified professional and/or the federal student loan program.

The information presented here is very basic and is in no way to be taken as an authority on consolidating loans. Always check with a qualified professional who can offer complete student loan consolidation info that best suits your situation.

Click here: Student Loan Consolidation Rules for further information.

Student Loan Consolidation Rules

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Applicable to the student loan consolidation rules are that the majority of federal student loans can be consolidated. While still in school, a student can consolidate their loans. There is a 6 month grace period immediately following graduation or during the repayment period. Keep in mind that interest rates are lower when consolidating loans while currently in school, or during the grace period.

Students should request early repayment status from the lender if they want to qualify while in school. The advantage of doing this is to lock in a lower rate. However, it will lock out your future grace period. But, payments can still be deferred by requesting an in-school deferment until after graduation.

Student Loan Consolidation Rules - Stipulations

1. Unlike refinancing a mortgage that allows you to keep locking in lower rates, you can consolidate only ONCE.

2. Lenders usually require a certain loan balance amount (check with your lender on the amount).

3. Time is of the essence, and it's up to the student to find a lender willing to consolidate student loans. You can find many good lenders that offer online services or you can get a list of lenders from your alma mater.

Student Loan Consolidation Rules - Advantages

1. The biggest advantage of a student loan consolidation is locking in low interest rates.

2. Opens the door to more savings opportunities - for instance, enrolling in an automatic debit plan could decrease interest rates even lower.

3. No prepayment penalties, so make sure to talk to the lender regarding this.

Student Loan Consolidation Rules - Disadvantages?

1. It's a given that monthly payments are lowered because the life of the loan is extended. However, you could be paying much more in interest over the life of the loan. Also, consolidating before July 1st, means you forfeit your 6 month grace period, and will have to start paying back immediately. If you're seeking a job during this period, it could be a scary situation - although, you may qualify for an economic hardship allowing you to postpone payments for a time.

2. Most consolidation lenders require a minimum loan amount to consolidate - about $10,000.

Be certain to discuss your options when you contact a lender, so that you are informed of all Student Loan consolidation rules.

By Student Loan Consolidation Info website.
Click here: Student Loan Consolidation FAQ for further information.

Student Loan Consolidation FAQ

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Below is Student Loan Consolidation FAQ information. To get complete detailed FAQs regarding student loan consolidation seek help from a qualified lender or visit the Federal Direct Consolidation Loans website.

Student Loan Consolidation FAQ

1. Definition of a Student Consolidation Loan
Student loan consolidation combines multiple educational loans into one larger loan with overall lower interest rates that a student pays off every month.

2. The Benefits of Combining Student Loans
One monthly bill, making it easier for borrowers to manage their debt. The borrower may qualify to use his/her grace period (if it hasn't been used) before repayment. Flexible repayment options with reduced monthly payments.

3. Student Loan Consolidation Eligibility
In order to be eligible for a Direct Consolidation Loan, your loan status and type must first be determined. However, the most common status is student borrower. Student Borrowers are eligible for an out of school consolidation if they have at least one Direct Loan or have been unable to obtain a Federal Consolidation Loan.

4. Type of loans That Can Be Consolidated
Loans that include Federal Perkins, HHS loans, and FFEL loans. Parents who have borrowed both Plus/Parent Loan can consolidate if other eligible, non Plus loans are included, as well as the parents meeting credit check requirements.

5. Eligibility of a Loan in Default
Generally yes, IF the borrower agrees to reinstate the loan under the Income Contingent Repayment Plan OR makes acceptable repayment arrangement with the current loan holders.

6. The Repayment Plan Options
Fixed payments for a maximum of 10 years, for the Standard Repayment Plan. For the Extended Repayment Plan, its fixed monthly payments with a repayment period ranging from 12 to 30 years, and depends on the amount that was borrowed.
Graduated Repayment Plan - monthly payments increasing every two years with repayment period from 12 to 30 years also depending on amount borrowed. Income contingent Repayment Plan: the monthly payments are based on the borrower's annual income, size of family and total Direct Loan debt - spread over up to 25 years.

For complete Student Loan Consolidation FAQ, always consult a qualified professional lender.
By Student Loan Consolidation Info website.