What Are Student Consolidation Loans?

Student loan consolidation is a method of consolidating multiple loan sections.

A student would have got several loans from several sources to cover up his educational fees. However, when this comes to interest payment lot of complexity arises.

Hence, student loan consolidation is one of the most useful ways to make the repayments easier. Such consolidation would reduce the monthly payments and make the payments easier as they would be only one repayment possible.

Eligibility for this student consolidation loan

The student must have borrowed at least $5,000 from one or more programs. Some of the programs that come under consideration of this, are as follows.

* Perkins Loans
* Stafford Loans

The interest rate of Stafford Loans is no more than 8.25 percent and that of Perkins Loans is no more than 9 percent.

However, this status is not always constant.

The interest rates vary depending on the principal amount owed by the student and the period of validity. It is also determined by the agency, which carries you consolidation loans.

Some of the steps you should follow on student consolidation loans are:

* The student must have begun to make payments or at least be in the grace period before a repayment begins. More than ninety days of delinquent in payment are not qualified for the program.
* After estimating your eligibility, contact the lending agency and tell them the relevant details. Relevant details here would include how much loan you owe and all the kinds of loan you borrowed.
* If you have Stafford or Perkins Loans, then the lending agency would purchase them from the federal government. The lending agency then will handle all collection and payment methods.
* Any queries or doubts regarding the repayment and other details must be posed to the organization carrying the loan.

The following types of loans can be consolidated:

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

Many people who are very successful today used student loans to pave their way to success. The student loans are available to those who do not have the funds to pay for their education.

To get detailed Information, visit http://www.favorablestudentloans.com

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