If you are a college student or a fresh graduate, you must have thought about how to repay your student loan debt. With so much information out there, it can be overwhelming for a young individual to decide what kind of loan repayment plan they should choose or how they can avoid wage garnishment.
The Student Loan Relief Department exists to assist borrowers with these important decisions. We provide you all the possible options you can use to repay your student loan debt quickly and achieve a debt-free future. One of our recommended options is loan consolidation. It allows you to combine all your student loans into a consolidated loan and repay them in an organized manner.
To help you develop an understanding of the process, we are listing its benefits and eligibility requirements.
What is Student Loan Consolidation?
The process of loan consolidation can be simply defined as combining many different loans into a single loan. With loan consolidation, you can simplify the payment process and pay back the loan at a consolidated fixed interest rate that is lower than the individual interest rates of loans.
The loan repayment term can also be extended with loan consolidation, which consequently results in lower monthly payments. Almost all federal student loans and some private student loans can be consolidated after fulfillment of the eligibility requirements.
What Types of Federal Student Loans Are Eligible for Consolidation?
The following types of federal student loans can be consolidated into a Direct Consolidation loan.
- Direct PLUS loans
- Supplemental loans for students
- Federal nursing loans
- Stafford loans, both subsidized and unsubsidized
- Federal Perkins loans
- Direct loans, both subsidized and unsubsidized
- Health education assistance loans
- PLUS loans taken out under the FFEL programs
Are There Any Other Eligibility Requirements?
The following requirements must be satisfied in order to consolidate several student loans into a single loan.
- The loans that are to be consolidated must contact at least one Direct Loan or an FFEL loan.
- The borrower must make necessary repayment arrangements with the lender or they will be required to choose one of the following repayment plan for their new consolidated loan:
- Income-based repayment plan
- Income-contingent repayment plan
- Pay-as-you-earn plan
How Does the Consolidation Process Work?
An individual can apply for loan consolidation once they graduated from school. The Direct Consolidation Loan application form can be obtained online or from the US Department of Education (DoE) and can be submitted in both electronic and paper form.
The borrower may apply for loan consolidation on their own, or they may seek assistance from a student loan debt relief organization like the Student Loan Relief Department.
What Are The Benefits of Loan Consolidation?
Loan consolidation not only streamlines your monthly payments, it offers you several additional benefits as well, which are listed below.
– Lower Interest Rate – The interest rate for your new consolidated loan is based on the average interest rates of all your student loans. So, if your loans have a variable interest rate, you may get the consolidated loan at a fixed lower interest rate.
– Single Monthly Payments – Consolidation simplifies the repayment process by consolidating multiple monthly payments into a single payment.
– Extended Repayment Term – Loan consolidation gives you an extension in the repayment term, which results in lower monthly payments and increased affordability.
– Affordable Repayment Plan – Loan consolidation gives you another chance to select a repayment plan that best suits your circumstances.
What the Student Loan Relief Department Can Do For You?
Student loan consolidation can be really helpful for individuals who are defaulting on their loan repayments due to financial hardships and are looking for an affordable option to get rid of their student loan debt. Loan consolidation offers several benefits, such as lower interest rate, repayment term extension, alternative repayment plan, etc. However, the process is complicated and requires extensive documentation.
The Student Loan Relief Department can help you pay off your student loans and build a sound financial future. We provide our customers complete and accurate information regarding their loan forgiveness and consolidation options. In addition to this, we guide you throughout the application process and make sure that you get your desired results.
If you would like to receive expert financial advice on managing your student loan debt, you can give us a call at (844) 677-0550.