College Student Loan News and Info

Student Loan Consolidation Info

Rolling all of your student loans into a single loan has never been easier. Both private lenders and the federal government off student loan consolidation programs to fit just about any scenario.

In order to qualify for a Direct Consolidation Loan, the borrower must have at least one Direct Loan or Federal Family Education Loan (FFEL). The loans must be in repayment, grace, or deferment. Students still attending classes are not eligible to student loan consolidation until after they graduate or exit school.

Financial experts recommend borrowers apply for a loan consolidation towards the end of the six to nine month grace period. Loans that are eligible for consolidation include Stafford Loans, Perkins Loans, PLUS Loans, Health Professions Student Loans, Health Education Assistance Loans, Nursing Student Loans, National Direct Student Loans, SLS Loans, and Federal Insured Student Loans.

Borrowers should carefully consider a student loan consolidation prior to applying for one. It is important to review interest rate information, payoff amounts and timeframes. For example, if you have only two student loans that are due to be paid off relatively soon, you would want to calculate out the difference in repayment for your current situation and a consolidation version.

Specific information on student loan consolidation - In general, however, eligibility for a consolidation requires the borrower’s loans to be in good standing. Default loans require rehabilitation before they can be consolidated. Repayment plans for Direct Consolidation Loans are quite flexible. There is even a plan for borrowers experiencing financial hardship.

After you receive a student loan consolidation and find that you are unable to make the payment, you may be eligible for a deferment. Under certain circumstances, the borrower can qualify for a deferment of payments. Interest is still charged during this time, but payments are not due. To qualify for a deferment, which can last up to three years, the borrower must show economic hardship. Students who go back to school can also qualify for a deferment.

This entry was posted on Friday, January 18th, 2008 at 2:58 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.