Is A Federal Student Loan Consolidation An Option For You?
Written by: Dean Shainin
Copyright 2005 Dean Shainin
There are several advantages when you get a federal student loan
consolidation. You can take advantage of fixed interest rates,
lower monthly payments, one payment each month, get payment
incentives and get new or renewed deferments.
There is usually not a minimum loan balance required with this
type of loan program. Also, you have the option of which loans
you may want to include and money saving payment incentive plans
with some federal student loan consolidation programs.
Another advantage is that you can consolidate your undergraduate
loans if you are still in graduate school. You can decide on
what loans you want to consolidate from the loans that qualify.
However, federal student loan consolidation can't include loans
you may have received from banks, credit unions, personal loans,
consumer debt loans or any other type of financial service loans
that you may have applied for in the past. They have to be
federal student loans to qualify.
What You Should Know Before You Apply For A Federal Student Loan
There are several types of loans that qualify for federal
student loan consolidation. When considering if your student
loan can qualify, be sure to be very clear on interest rates and
to see if you can save money with this type of consolidation
loan. Sometimes student loan consolidation can increase your
interest rate and cost you more than you are paying now.
Many federal student loans have a very low fixed interest rate
already in place. This is why it is very important to be very
clear on the rates from the plans you may be considering before
you do a federal student loan consolidation.
What would be the point if you end up paying more for your
consolidation loan? However, for some students it might be a
good idea because of the hassles of trying to keep track of
several student loan payments and monthly due dates.
Only you can decide if a federal student loan consolidation
makes sense for your financial situation.
What Type Of Loans Qualify For Federal Student Loan
There are several federal student loans that may qualify for
consolidation. Be sure to take some time to research the option
you are considering and compare costs. You can use online
calculators to get an estimate on payments. Check to see if your
type of federal student loan will qualify for a federal student
loan consolidation program.
10 Types Of Loans That Can Qualify For Consolidation
1. Federal Perkins Loan 2. Federal Stafford Loans 3. Federal
Direct Loans 4. Federally Insured Student Loans 5. Federal
Parent Loans 6. National Direct Student Loans 7. Nursing Student
Loans 8. Health Education Assistance Loans 9. Health Profession
Student Loans 10. Auxilary Loans To Assist Students
With some research and a little education you may be able to get
a federal student loan consolidation to help ease the burden of
having several student loans. You can focus on your education
and new career instead of stressing out about trying to keep
track of several loan payments and due dates.
With today's Internet access, you now have an advantage when
considering a federal student loan consolidation as an option.
You can easily see if you qualify and get the best loan program
for your financial situation.
About the author:
Dean Shainin is a consultant specializing in student loan
consolidation. Get valuable resources, tools, information and
more articles on student loan consolidation, visit this site: Student Loan Consolidation
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