Consolidating Federal parent or student loans mean that a graduate or a college parent can lower there monthly student loan payment by upto 42% by simply Consolidating his/her Federal parent or student loans.
Repayment term can be extended from the standard 10 years to up to 30 years by consolidating/combining their Federal parent or student loan. This obviously results in more time to repay, the amount repayable each month will also be smaller.
Smart Borrowing with Student Loan Consolidation means a borrower can qualify for all benefits such as, no credit checks, Fixed rates of interest, lower monthly payments, longer repayment terms, one payment for multiple student loans and deferred payments.
Student loan consolidation replaces one’s variable-rate student loans with a fixed-rate consolidation loan and puts an end to increased rates of interest and rising payments.
Federal student loan consolidation program facilitates borrowers to collect all their federal parent or student loans into a single fixed-rate consolidation loan with just one monthly bill, one lender, a monthly payment that is fixed for the entire life span of the loan. It releases the borrower from the stress of multiple bills, multiple lenders, multiple due dates and multiple monthly payments.
Moreover, student loans can be consolidated without spending an extra penny on application fees, processing fees, credit checks and early payment penalties. One will never be charged superfluously for paying more than extra payment than the minimum monthly payment and similarly no early payment penalties if the borrower wishes to payoff early.
The application process of Federal Student Consolidation Loans is also online, quick and hassle free and as easy as a click on the mouse.
If a borrower is using a Private student loan in addition to a federal student loan, it will not be possible for him to consolidate his private student loan with Federal student loan consolidation program. Nevertheless, if the borrower wishes to avail oneself of a single consolidated loan for his/her private student loan, he may qualify for Student Private Consolidation loan.
The terms of the loans that are being consolidated determines the reduction in actual payment. The actual payment reduction may thus vary.
The advantage is that consolidation loan payments may be temporarily postponed in certain cases such as if one is unemployed or facing financial crisis, if one is in the military and has been deployed and if one is on duty and serving the country either during war or some other national emergency
