Student consolidation loans are often the smartest move a borrower can make if over laden with college debt. A student consolidation loan is designed to help students who have borrowed to simplify their repayment by combining several types of federal aid with various repayment schedules into one balance. The entire amount is then given a fixed rate with one monthly payment. Student consolidation loans can lower the total interest paid and possibly save up to 60% on the monthly payment. Some rates are as low as 4.750%, giving a savings of up to 1.25% and can be locked in for the life of the repayment. In addition to monthly savings, this option may be able to rescue the borrower if in default on borrowed financial aid.
Based on personal circumstances, these conjoined accounts can help match a repayment plan and term to fit an individual's ability to repay them. Student consolidation loans are available for most federal aid such as Stafford and Perkins, NSL and Direct Student Loans. If private lenders' assistance funds are used to finance an education, generally, they cannot be consolidated along with federal aid. Student consolidation loan rates are not available to include private education assistance. There are, however, private programs for other options available.
When considering which lender to use, it is important to shop around as there are often special discounts offered for electing electronic payments and for several years of payments on time. When looking for the best deal on a student loan consolidation, first find out if the interest rates are fixed, as variable rates can cost more over the life of the repayment period. With fixed payments on a student consolidation loan, the certainty of regular payments is guaranteed.
One year, college enrollees and parents took out 1.6 million in financial aid borrowed totaling 43.7 billion dollars, according to figures from the United States Department of Education. Student consolidation loans are almost always the best way to go. If the graduate has an employer such as law enforcement or some of the health industries that is willing to repay their financed college aid, then that is the only time a student consolidation loan wouldn't be in the borrower's best interests."The eyes of your understanding being enlightened;that ye may know what is the hope of his calling and what the riches of the glory of his inheritance in the saints" (Ephesians 1:19).
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