As a student you may have taken more than one loan from the government for your education. You can combine all the loans together and make it as one loan. You can also combine loans that you got from the government and any private student loans as well.
A student loan consolidation is a tool used by many loan companies as well as the government today by which you can refinance and consolidate all your school loans. Recent studies reveal that any student who graduates from college in 2009 has about $23,000 in student loans.
Government Student Loan Consolidation
A government student loan consolidation is done by the Federal Student Aid and also known as Federal student loan consolidation. As a student you may have taken more than one loan from the government for your education, you can combine all the loans together and make it as one loan. You can also combine loans that you got from the government and any private student loan as well, but you may lose the advantages that come along with the Federal loan.
1. The main advantage is that when you consolidate you can get an extended repayment term and the interest rates of federal loans may be slightly lower than the combined interest rate that you paying right now. Moreover by getting a longer repayment term your monthly payment will naturally become less. You can avail a maximum repayment term between 10 and 30 years depending on the amount of your loan.
2. You can make a very handy one single repayment every month. There are no fees or any credit checks involved in this process.
3. You can combine both your subsidized and unsubsidized loans together. These will be consolidated as two separate loans by which you can easily monitor, but will be combined and you can pay only one repayment every month.
4. You can fill out an online application for this loan consolidation and you will have to just submit a promissory note and a introduction letter. One you submit all necessary details the process gets over in about 60 to 90 days.
5. When you are trying to continue your education further this option will be very helpful as you can get new and different repayment options and a longer repayment term. The minimum qualifications for consolidation is that you must have more than one federal loan and you should be either still in your six month post graduate grace period. You should have made three full monthly payments on time for each of the loans that you want to consolidate.
Government student loan consolidation has a fixed interest rate, not like other varying interest loans, the best thing for you is to wait and watch, pick up the right moment when the rates are low and make a move to consolidate your student loans.