Tips for Student Loan Consolidation

Federal student loan consolidation is a re-financing program that allows you to combine all existing federal student loans into new single loan. No application fees, credit checks or cosigners to the consolidation of student loans. Benefits of consolidation are:

Lower monthly payments.
Student loan consolidation provides more loan maturities, which in turn lower your monthly payment. This will free more money for other costs such as rent or mortgage payment, car and food, the cost of utilities, and credit card payments. Depending on the balance sheet, you can see your monthly payment up to 53%. Since there are no penalties for early repayment or extra, you can use larger payments at affordable prices.

Lock interest rates remained low.
Currently, unconsolidated federal student loans with variable interest rate that changes every year on 1 July on the basis of treasury bills. Consolidating your student loan, you can lock in the interest rate fixed for the duration of your loan.

Adjust a payment plan.
Consolidating your student loan, you have the possibility to opt for a payment with the appropriate level of income at this time. Operators such as the Graduate repayment plan start for the first few years as lower interest payments only, and then increased to a level repayment plan. The plan is to help people who need assistance payments from the law school, while they get jobs and created.

One payment per month.
By consolidating, you eliminate the need for some monthly payment for each of your federal lenders. With all the combined loan, you will only need to write a check each month.

Maintain your deferment and interest subsidy benefits.
Since the federal student loan consolidation is a new loan from the federal government, you will not lose your credit and delay the benefits. In addition, you will receive your interest subsidy benefits on any subsidized FFELP or subsidized direct loans that you consolidate.

Help your credit.
Consolidation of all existing federal student loans, which they do not pay in full, and combine them into a new loan. Rather than have a lot of open credit with limited payment history, you have only one loan. Their older student loans will be paid. In short, consolidation helps eliminate open lines of credit.