Education is today's biggest requirement besides food and employment for sustaining a decent life. In order to facilitate the employment and shelter needs, it is necessary to be equipped with the power of knowledge. To fulfill the needs of various students who find it difficult to pursue their education program, the US government has come out with the idea of providing students with a consolidated loan named as "federal government student loan consolidation," which is a combined form of the various loans taken, by a student.
A program that the US government has launched is the Federal government student loan consolidation program that enables students in continuing their graduation and higher study program. With the help of the consolidated loan where the interest rate is nominal as it is meant for the benefit of the students community where parents and guardians cannot invest huge amounts in the education of their wards.
This federal government student loan consolidation can be repaid in easy installments when the student completes his education and is in a position to earn and pay. This saves the student from repaying different lenders at different points in time with different interest rates. The time period chosen by the student for the repayment of the loan can vary from 10 to 30 years. However, the longer the time period you choose, the greater the amount you pay.
Some of the features of Federal government student loan consolidation are:
This loan does not require hefty loan processing fee, and the payments can be made in flexible schedules. The interest rate is a fixed amount, which is the average of the total interest rates of different loans, which is rounded off to the 1/8th of the percentage. Any student who has a history of bad loan payment is still eligible for the consolidated federal loan. There is no minimum loan amount limit.
Thus, this is a premium policy of the federal government student loan consolidation program, which is indeed a student friendly move.