Student Loan Consolidation

Student Loan Consolidation: Take The Pressure Off

Finding money for college can be as challenging as pursuing a degree. Student loans can provide the needed cash; but once students graduate, they have amassed a huge debt. Thanks to the student loan consolidation program, though, graduates can remove the pressure.

By consolidating student loans, you can merge all outstanding loans into a single indebtedness with one lender and one repayment plan. The individual loans are paid off in full, and the total amount is rolled over into the new loan. Student loan consolidation is available to either students or their parents.

Combining loans lets you lock in a fixed interest rate that's typically lower than the original loan rates. You also lower your monthly payment. These loans have flexible repayment options and no fees, charges, or prepayment penalties. What's more, there are no required credit checks or co-signers.

Eligibility requirements
To be eligible, you must either be in the post-graduation six-month grace period, or have started to repay your loans. The total amount of your indebtedness must be a minimum of $7,500, with more than one lender, and you should not have already consolidated. However, if you've returned to school and have additional loans, consolidation is an option once again.

The following types of loans can be merged:

-Direct Subsidized and Unsubsidized Loans
-Subsidized and Unsubsidized Federal Stafford Loans
-Direct and Federal PLUS Loans
-Direct and Federal Consolidation Loans
-Guaranteed Student Loans
-Federal Insured Student Loans
-Federal Supplemental Loans for Students
-Auxiliary Loans to Assist Students
-Federal Perkins Loans
-National Direct Student Loans
-National Defense Student Loans
-Health Education Assistance Loans
-Health Professions Student Loans
-Loans for Disadvantaged Students
-Nursing Student Loans

Finding a lender
To apply for a debt consolidation loan, visit any bank or credit union that participates in the Federal Family Education Loan Program, or apply to the U.S. Department of Education. If all your loans are with one lender, you must consolidate with that lender. The loan terms and conditions are generally the same, no matter where you do business.

The time immediately following college is a fresh start in life; don't be burdened by the debt of the past. Get your college finances under control with a student loan consolidation, and take the pressure off.

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