About the Student Loan Consolidation Program
Student loan consolidation combines all of your previous loans into one single loan that is paid off at a specified date. The benefit of consolidating student loan debt is lower monthly payments to finance the debt. This also allows you enough time to get a steady and stable job to ensure that you easily pay off the debt within time. Consolidating your federal student loans requires that you fulfill certain criteria to become qualified
Federal Student Loans
You should be glad to hear that majority of government student loans are qualified for consolidation. Some of the federal student loans that are eligible for consolidation includes:
- Supplemental Student Loan
- PLUS Loans
- Federal Nursing Loans
- Direct Subsidized or Unsubsidized Loans
- Health Education Loans
- Subsidized and Unsubsidized Stafford Loans
- Federal Perkins Loans
- PLUS loans (Feel Program)
Fulfilling the Eligibility Criteria
You should note that you must fulfill certain conditions to become qualified for consolidating student loans. One of the conditions to avail this debt relief program is that at least one of the loans should be within the allowed grace period. Moreover, you have to make an agreement with your previous lenders relating to loans that you have failed to pay prior to consolidating student loans.
Prepare Yourself Before Applying for Consolidation
The importance of doing proper research before applying for consolidation cannot be emphasized enough. Although you may be qualified for consolidating, sometimes your debt burden increases with consolidation. Furthermore, you should remember that whether loan consolidation is right for you or not depends upon how much you can forego in order to get relief from your debt burden. Consolidating your student loans extends the repayment period that results in lower monthly payments, but it also increases the amount of interest rate on the loans.
Getting guidance from professional loan consolidation counselling firms is the best option to ensure that you get the best terms and conditions on consolidating your loans. After all, you want to get relief from your debt burden and not overburden yourself with debt.