mortagesandforeclosures

by Jessica Mousseau

For many students, parents, and alumni, a student loan consolidation program is a good idea. A student loan consolidation program will combine all the loans you've left to repay into a single, low-interest rate loan.

Student Loan Consolidation Can Help You Out.

Whether federally-funded or privately funded, a student loan consolidation can lower your interest rate and lowering the amount of money you'll pay over the life of the loan. A number of different companies offers student loan consolidation programs, and you'll want to know more about what they offer so that you can choose the reconsolidation that's right for you.

Sallie Mae is the name of the federal student loan re consolidator; many commercial financial services will also offer to help you consolidate your federally funded student loans.

The packages that they offer are competitive, and you can get a better deal for yourself if you check around and compare what you'll get. Some will guarantee you a specific or comparative interest rate; some offer you borrower discounts just for making the first 24 or 36 payments on time. Many are willing to waive credit checks, cosigner requirements, or requests for collateral. Some will offer you the ability to consolidate your loan without an application fee; some will provide online forms to speed your application on its way.

Different Types of Loan Consolidation

There are two types of loan consolidation programs available, federal consolidation and direct loan consolidation. Federal consolidation, made possible by the he Federal Family Education Loan Program (FFELP), is available through many banks, lending institutions, and private lenders. Direct loan consolidation, through the Federal Direct Student Loan program, FDSLP) is available directly from the federal government.

Direct loan consolidation is available to borrowers out of school who have at least one Stafford loan through the Direct Loan Program or, if their Stafford's through FFELP, then either their current FFELP holder doesn't offer federal consolidation, or the borrower finds the terms their Federal Consolidation unacceptable.

Lenders offering these two forms of consolidation compete with each other for borrowers. Competition can be good for borrowers, as it increases the number of services and the different rates available. However, some students or recent graduates find that they receive unsolicited information on loan consolidation from a variety of service providers. Some of this information will not be tailored to meet their needs, and as a result they may receive incomplete information or misinformation.

About the Author:

Jessica Mousseau will give you the proper tools to help conquer the mountain called student loans; to further educate yourself on paying off student loans checkout the overlooked tips and tricks of paying of student loans.

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