Blog Archives

Interest rate arbitration – Consolidate multiple loans to save money

January 17, 2013

It’s rather common to find a plethora of companies that are eager to consolidate your loans. There are offers to cut your loans into half as well as lower your interest rates. However, fact remains that if you consolidate your high interest loans and credit card debt into a single loan with a lower interest rate, then it makes sense. You can easily handle the manageable payments and improve your financial situation for the better. At the same time interest rate arbitration is also another means by which you can eliminate high interest debt.

  • How to go about loan consolidation before Interest rate arbitration

Follow these steps to go about loan consolidation and take care of your debts in the easiest way possible –

    1. Consider your options: The first and foremost thing you’ve got to do is consider all your available options and prioritize accordingly. If you simply want to save money, then you don’t really have a dire need; whereas if you have to sell off your assets to pay off debt, then it’s an immediate necessity.
    1. Check your credit report: Remember, any loan that you get will obviously be based on your credit score. Check and confirm what your credit score is by ordering a copy of your credit report. If you’ve got a reasonable credit rating, then you can easily consolidate your loans at a lower rate of interest.
    1. Choose the right loan: Make sure you choose the right loan for yourself when consolidating your loans. Know that secured loans generally have lower interest rates involved. Unsecured loans are again a safer option considering the fact that you don’t land up risking anything.
    1. Finalize the loan: Now, once you’ve chosen the right loan for yourself, make sure that you complete the full application process. Try and make it straightforward; though it takes some time, yet you should take utmost care to get it done.

Interest rate arbitration

  • Find out more about interest rate arbitration

Interest rate arbitration is basically a strategy that makes possible the whole method of high interest debt. If you’re struggling with multiple credit card debts and loan payments, then this method is ideal for you. You’re bound to see significant savings each month and throughout your repayment period in general.

Interest rate arbitration, in fact, happens to be a rather fancy way of talking about consolidating your debts for a lower interest rate. Whenever there’s interest charged on the debt, you’re actually paying more money for the privilege of borrowing money. If you use interest rate arbitration, then you can actually combine more than one high interest rate debts to one particular account which has a lower rate of interest. This lowered interest rate isn’t the only benefit that you get out of interest rate arbitration, you’ll also have just one payment to make each month.

Keep in mind the above discussion about loan consolidation and interest rate arbitration when you’re about to tackle your debt woes sincerely. It’s easy to go about these processes only when you’re aware of the exact requirements.

Private Student Loan Bankruptcy

December 15, 2011

Private Student Loan Bankruptcy

Private Student Loan Bankruptcy

There has been a lot of debate to whether private student loan bankruptcy is actually possible, which there have been cases where individuals have been able to discharge their student loans through the act of filing bankruptcy, where as some privatge lenders actually state that bankruptcy is not a possibilty. The general rule of thumb that applies to the eligibilty to partake in student loan bankruptcy for private loans is that you must prove that your are experiencing what is called “undue hardship”. The basic definition of undue hardship is, if student loan payments are creating a large burden on yourself or the one who is responsible for paying off your loan like a parent, or creating hardship for your family like a couple or a couple with children.

What situation qualifies for undue hardship? Well for examples sake, Sallie Mae one of the biggest providers of private student loans, states that in order to qualify for undue hardship and use private student loan bankruptcy as a way to discharge your loans, you must basically not be able to work and not able to make any money at all. In this case, in order to use bankrytcy for private student loans, you will actually need to go in front of a judge and prove your situation.

Why Is Private Student Loan Bankruptcy So Hard To Qualify For

The basic reason that it is hard use private student loan bankruptcy is the fact that is has no benefit for anyone, being both your private loan lender who will lose money as well as tax payers will actually lose out on money as well. Not to mention that fact that the one who files for private loan bankruptcy will end up ruining their credit as well as pretty much losing out on the privelage of borrowing money. So the real reason to make it so hard to qualify is to protect pretty much everyone who would be affected.

Latest News On Private Student Loan Bankruptcy

Although the outlook on one qualifying for private student loan bankruptcy looks pretty dismal, there is a law in the works that can drastically change the rules to who and what situation can qualify for bankruptcy. The law that is being processed right now is:

  • The Private Student Loan Bankruptcy Fairness Act of 2011 – This act is just now in the first step of the entire legislative process.
  • Fairness For Struggling Students Act of 2011

Alternatives To Consider Before Bankruptcy

Private student loan bankrupcy obviously should be considered as a last resort as it can impose negative situations on your life. Some other alternatives that you can consider, which will help you get out of debt are:

  • Talking To Your Lender – If you contact your private loan lender and explain your current situation, there is a great possibility that they will work with your, and cater a payment plan that geared more to what you can afford. This can be a great method as lenders want you to pay back the loan and not discharge, so they will often times take extreme measures to keep your business. This can include your payments being reduced or stopped for a while, but will consist of accruing interest during that time.
  • Consolidation – Consolidation of your loans is another great option to consider to avoid filing for private student loan bankruptcy, even if you have one loan as consolidation requires at least one loan. What consolidation does is stretch out your repayment term to as long as 25 years, which will reduce your payments, as they know you will end up paying more in interest over the life of the repayment, but once you are able to pay more you can usually do so without penalty and get out of debt faster. One thing to keep in mind is that you can get lower interest and better terms with good credit, which you either need to have good credit or find a cosigner who does.

 

Student Loan Consolidation Rates

December 3, 2011

Student Loan Consolidation Rates

Being that we are are talking about student loan consolidation rates, that means that you have most likely graduated so congratulations on making it through the grueling road! When it comes to rates that consolidation companies will offer, there are two main categories, those being a fixed rate which is an interest rate that stays the same for the entire time you are paying off your consolidation loan, as well as variable rates which can go up or down during the time you are paying back your debt, depending on the general index of all interest rates.

One can consolidate both private as well as federal loans, but must be done seperately, which student loan interest rates tend to be much lower on federal loan consolidaion. To give you an idea of how rates are calculated, the lender will average all your current interest rates that you are paying on your loans and will round that number to the nearest 1/8 percent.

Student Loan Consolidation Rates

How To Get The Best Student Loan Consolidation Rates

When it comes to getting the best student loan consolidation rates, it is a known fact that some of the lowest rates are found amongst non profit consolidation companies, as they are not looking to close you as a customer in order to make a paycheck, which you can verify if they are non profit by asking them to prove it by showing you the non-profit formation being: (501(c)(3)). The below tips are some great rules to follow when it comes time for find a company that will give you the best student loan consolidation rates, which will mean you paying a lot less in the form of interest that you would with a high consolidation rate.

  • You will want to go for the best principal rate reduction if you want to pay off your debt early, which if you do want to pay early, make sure that they do not have any repayment penalties for early repayment or higher than the minimum payment.
  • For those of you who are looking to spread out payments for as long as possible, you will want to look for an interest rate reduction.
  • Find companies that offer discounts that are applicable throughout the life of the repayment, not just for the first couple months.
  • Do not settle with the first company you find, compare student loan consolidation rates.
  • In the event of private student loan consolidation, you want to either have good credit, or bring a friend or family member who has a great credit score, where their higher the score will most often mean the lower the interest rate. If possible try to get an interest rate that is at least 750.
  • If you already consolidated your loans and have built up a better credit score during that time, you can consider switching to a different lender, which in turn will provide you with a lower student loan interest rate due to your credit score boost. Or you could try and negotiate with lenders and tell them that you are thinking about doing business with another lender, and then ask them if they will drop your interest rates or provide you with any other discounts in order to keep your business.

It is also important to know that there many companies out there that are trying to scam you. You can avoid these companies and get great student loan consolidation rates by verifying the company by checking if they are part of one of the following; The Association of Debt Settlement and/or Internal Association of Professional Debt Arbitrators (IAPDB).

 

Direct Loan Consolidation Overview

November 17, 2011

Direct Loan Consolidation

Direct Loan Consolidation

Direct loan consolidation is a free service offered by the US Department of Education as a way to group all of your student loan debt into one single payment, and doesn’t require one to go through a credit check for acceptance. Consolidation of student direct loans can consist of loans programs that include; Federal Perkins Loans, Direct PLUS Loans as well as Federal Stafford Loans among near all other federal programs that offer financial aid. Direct loan consolidation was formed to both provide savings right away as well as long term, as well as provide stress relief by allowing one to only have to pay one payment instead of multiple.

Major Benefits of Direct Loan Consolidation

If you are looking to use direct loan consolidation for your student loan debt, it should be known that you should either be in the grace period provided by your lenders, or anytime after that during your repayment, as you cannot consolidate your direct loans if you are still in school. If you choose to consolidate your loans during the time of your grace period, then your grace period ends no matter how much time you have left on it, which it is suggested that you wait until your grace period is finished and then apply for consolidation. Some of the major benefits that come from using direct loans consolidation are:

  • One can enjoy a longer repayment period, which can be stretched out to up to 12 to 25 years, compared to the normal 10 year timeframe that is given for direct loans. Payments will be lower with this option, which means more interest is going to be paid in the long run, but there are no repayment penalties, meaning you can pay more than the minimum anytime you choose. Extended the repayment period has been shown to lower monthly payments by up to 53 percent.
  • Your credit score will actually go up by using direct loan consolidation as your loans will be registered as paid off as soon as you consolidate, which is view as a positive aspect by credit bureaus.
  • You will be paying on a fixed interest rate, meaning the the interest percentage that you are paying when you first start, will be the same amount until you last payment.
  • There is a possibility that the act of consolidation can actually provide a lower interest rate than that of what you are currently paying to lenders.
  • It offers flexible repayment options.
  • One can consolidate defaulted loans if in the event that they either; pay their debt off by using “income contingent repayment” or make “satisfactory repayment arrangements” through their current lender.
  • Health profession loans can consolidated as well, like for Nursing Student Loans or Health Education Assistance Loans among others.
  • You can also consolidate other existing loans that have been consolidated.
  • Multiple repayment options which include; standard repayment, graduated repayment, extended repayment, income contingent repayment and income based repayment, which you are able to switch repayment plans anytime during the life of your repayment term.
  • You can receive 0.25 percent off of your interest rate if you use their “Electronic Debt Account” which your payments will be deducted one time per month.
The entire process will usually take around 60 to 90 days to get started with consolidation, in which after the beginning of the process, one will have up to 180 days to add other loans in which they either forgot to include or left on purposely. If one chooses to use direct loan consolidation for other loans not consolidated the first time around, then they must apply for a new consolidation loan. It is also not applicable for married couples that are trying to do joint filing. The last thing your should keep in mind is that if you do choose to use direct loan consolidation while you are repaying loans, keep repaying your lenders until your lenders have contacted you informing you that the loans have been paid off.

Private Student Loan Consolidation Providers & Overview

October 12, 2011

Private Student Loan Consolidation

private student loan consolidation

Major Overview:

  • By utilzing the act of private student loan consolidation, you are basically partnering with a company who will pay off all of your private loan providers, to provide the convenience of you only having to pay one payment, and that is to you consolidation provider. This is done by providing a consolidation loan.
  • Private student loan consolidation should be done sperately from federal student loan consolidation because you will lose the benefits that come with federal consolidation loans which are much better than private.
  • The term of your loan is reset when you use consolidation your private student loans, this often equates to lower monthly payments, but is done by providing a longer repayment period which means more interest paid. Although this can be avoided by finding a consolidation company that doesn’t charge a penalty fee for paying more than the monthly minimum.
  • You can consolidate one loan and still enjoy the benefits of consolidation.
  • Payments need to be made usually within 30 to 60 days after you start your private student loan consolidation contract.
  • Repayment periods usually last around 15 to up to 30 years and are a bit shorter for undergraduate students compared to the graduate student repayment period.
  • Active duty military members many recieve a deferment period of up to 36 months as well as medical and dental residents can be granted up to a 48 month deferment time.

Private Student Loan Consolidation Tips

  • Being that private student loans are credit based, in the event that your credit score is a lot higher since the time that you took out the private loans, you may be able to get a much lower interest rate with a private student loan consolidation company compared to what you are paying to your currrent lender(s).
  • Negotiating with your lenders is another viable option as they want your business and are looking to keep it at all costs, which can open up an opportunity to negotiate lower interest rate terms.
  • If you can find a co-signer with a better credit score than you do, this can be a great way to get a lower APR rate. After a couple years, the consoldiation balance can be tranferred from your co-signers name to your name where, they will submit your payment history to credit bureaus, and you can boost your own credit score.

Private Student Loan Consolidation Providers

If you are still looking to utilize private student loan consolidation, you can use these accredited providers to take advantage of the benefits.

  • Wells Fargo Private Student Loan Consolidataion – Interest rates are either fixed or variable, a 5,000 dollar minimum debt and 40,000 to 100,000 maximum, no activation fee, slight discounts for those who already hold an account at Wells Fargo as well as those who enroll in auto debit, variable interest rates range anywhere from +1.0-5.75+ which are Prime rates and for fixed rates 8.8-13.3 percent
  • NextStudent Private Loan Consolidation – Every quarter their interst rates vary, loan consolidatoin starts at 7,500 in private student loan debt to up to 300,000, offers up to 30 years for repayments and they do not charge any fees for higher repayment amounts.
  • Cedar Education Lending Private Student Loan Consolidation – Amounts range from 7,000 to up 100,000, 1 percent activation fee, after one year the cosigner can be “released” and the debt will be tranferred to the person who originally took out the loan.

 

Student Loan Consolidation Rule

September 2, 2011

Student Loan Consolidation Rule

The main student loan consolidation rule is that you must be fully completed with your schooling in order to conslidate your student loans, which if you are unfamiliar with what student loan conslolidation is, it is the act of grouping all of your loans together so you only have to pay one payment each month. Consolidating loans when school is finished also means that you do not intend on going back to school after your start the consolidation process.

By adhering to this student loan consolidation rule, you will be able to enjoy the benfits of lower monthly payments, lower interest rates and best of all, you only have to pay one lender instead of multiple lenders. They are able to do this by extending your repayment period, which if you choose to pay larger payments down the line you can do so.Above is the student loan consolidation rules, but there are other rules and regulations that one may abide by as well. Below are the rules that one must fit in order to enjoy consolidation.

Sutudent Loan Consolidation Rule – Rules & Regulations

  1. The first student loan consolidation rule is that you cannot consolidate federal loans with private loans. This is not a big deal as most consolidation companies offer services that involve both federal and private loan consolidation.
  2. Consolidation is a free process in which can help you immensely, so never pay for any consolidation service as this is no doubt a scam.
  3. There are no restrictions when it comes to student loan consolidation. You may choose to go with any lender you find, but it is highly advised that you apply for many consolidation companies as you can pick and choose which one provides the best benefits to you.
  4. The next student loan consolidation rule is that you can choose whichever loans you want to consolidate. You do not have to consolidate all your loans.
  5. You can even consolidate one loan and still enjoy the benefits of student loan consolidation.
  6. You can only consolidate after your graduation or if you drop out and the best time to do this conslidation is during the 6 month grace period the most all lender offer to their borrowers.
  7. The last student loan consolidation rule is that you can get your monthly payments decreased by up to 60 percent by doing student loan consolidation which can be an excellent benefit when you just get out of college.

Student Loan Consolidation Rule Conclusion

This is the main overview of the student loan consolidation rule as well as different rules and regulations. Student loan consolidation can help you save on your montly payments and interest as well as offer the convenience of just having one organization to deal with for payments and account information. Although the goal of consolidation is to make your payments lower so you have a longer payment term which equates to you paying them more interest, a student loan consolidation rule is that there is no repayment penalities meaning you can increase your payment in the future and still enjoy the benefits on consolidating your student loans.

Student Loans Consolidation – 5 Comanies & Pros and Cons

September 1, 2011

Student Loans Consolidation

Student Loans Consolidation

If you have been contemplating student loans consolidation, there are many companies out there that are offering consolidation services that you can use. If you are unfamiliar with what student loans consolidation is, it is grouping all of the loans you have into one single monthly payment, which is accomplished by you consolidation company essentially purchasing your loans from your lenders so now you just pay the consolidator, although one student loan can be consolidated as well and still enjoy the benefits that come with consolidation.

These programs offer a lower monthly payment as well as a fixed interest rate by repayment period of your loan. Below will be 5 different resources you can use tha offer student loans consolidation as well as information on each as well as the pros and cons that come with consolidating student loans.

5 Student Loans Conslidation Companies

  1. Next Student - This company offers private student loans consolidation as well as federal loans. With this option you can receive a payment term of over 30 years, they have low introductory rates, no repayment penalties as well a there is not collateral required for service.
  2. ScholarPoint.com – WIth this student loans consolidation company, they offer no fees for their service, a mximum rate of interest being at 8.25 which is often way lower, fixed interest rates as well as if you choose to pay more, you will not be penalized. They also offer 4 different repayment plans that offer different scales of pay that suit your income best. They as well offer private and federal student loan consolidation services.
  3. US Department Of Education – This option focuses on just federal loan consolidation, and offers up to 30 years to repay your student debt.
  4. Loan Approval Direct – Student loans consolidation through Loan Approval Direct offer many benefits like consolidation of up to 125,000 dollars of debt, interest rates at as low as 3 percent, and collateral is not a requirement.
  5. Debt Consolidation.com – This is another great resource for student loans consolidation and their online application process is very simple. With this option you will know how much you will save within minutes after applying.

As you may be able to tell, the abvoe student loans consolidation companies are both federal and private. This was done this way because you must choose a federal consolidation company for all your federal loans and the same with private loans, they must be with a private student loans consolidation company, although most companies offer the services of both.

The best thing to do if you are considering student loans consoidation is to submit application for multiple companies as you can compare their rates and service and choose the best one.

Student Loans Consolidation Overall Overview

Student loan consoidation offers advantages and disadvantages. Just so you know what to expect, here are some of the pros and cons.

PROS

  1. Lower interest rates that are fixed and they will never change. This is great as interest rates are at an all time which means even when they go up, you will still have the low interest rate.
  2. Student loans consolidation offers one payment instead of mutliple payments as well as one phone number to call for questions.
  3. You can consolidate loans with your spouse giving you both just one lump payment.

CONS

  1. Longer payment terms mean you will pay more in intererst. Although you can still consolidate and enjoy the benefits and still pay your student loan debt off faster with a higher payment.
  2. Requirement is sometime tough, as you must have a certain amount of debt as well as loans you must have came from a certain group of lenders.
  3. It is overall all an okay way of saving, there are better ways like student loan forgiveness that can offer low payments as well as get a lot of you debt wiped away.
  4. Other benefits you had with your other lenders do not carry over with the studnent loans consolidation company.

 

 

 

 

 

Student Loan Consolidation – Pros & Cons & Companies To Use

August 27, 2011

Student Loan Consolidation

Since many loan programs that students apply to give you the freedom to not have to pay monthly payments until you schooling is over, it is easy to forget about the money you owe all together, but when you are a week away from graduating, or already in your career, you have to map out a plan of attack to get your debt paid off.  Student loan consolidation can decrease your monthly payments by hundreds of dollars, depending on how much you owe.

By choosing to consolidate, you will both save money as well as be able to knock out your debt in record time, instead of being stuck with the debt for many years to come. But just like anything else, there great things and not so great things about student loan consolidation, the list of pros and cons will give you enough information for you to be the descision make whether or not consoliation is the way to go for you.

Student Loan Consolidation

Student Loan Consolidation – Pros

  1. One of the best parts, if not the best part of student loan consolidation is that you can group all of your loans programs into one lump payment, instead of worrying about dealing with multiple different programs and paying multiple different payments. This means that if you have any questions pertaining to your payment, the one company you are consolidating with can be your one stop resource.
  2. Student loan consolidation doesn’t require that you consolidate all your loans, you can pick and choose which ones you want to consolidate.
  3. Consolidating will no doubt make your monthly payment a lot cheaper than what you are paying now, and with all consolidation companies, your interest rate will be locked at whatever is choosen for you when your begin.
  4. Student loan consolidation companies are all competing for your business which means that there are plenty of benefits that will be offerd to you like reduction in your interest rates.
  5. The actual act of consolidating will never have a negative effect on your credit score.

Student Loan Consolidation – Cons

  1. Being that your interest rates are locked, if the median interest rates drop in the future, you will be stuck paying a higher interest rate to your student loan consolidation company than what you could of because of the drop.
  2. In the event that you happen do default on your payments, it will be reported to credit card bureaus and will effect your credit score.
  3. By extending your repayment time, your monthly payment will decrease by a lot, BUT, you will end up paying a lot more in the long run, so don’t be fulled by this so called “benefit”.
  4. Switching ot s student loan consolidation program can mean losing the perks and benefits of paying your loan payments to your current lender.
  5. Student loan consolidation programs generally have longer repayment periods which can act either as a pro or a con, being that it can take you longer to pay off the loan. This could be good if you don’t have a lot per month to pay, it can work to your benefit, but if you want to get it paid off fast, it might not be the best choice.

Now that you know both sides of student loan consolidation, you can now make the choice whether you want to make the switch or not. If you choose to do so, there are some incredibel and accredited companies to use. Here are a couple student loan consolidation programs that you can use:

  • Loan Approval Direct is a great company that has been doing student loan consolidation for many years and can slash your current monthly paymet by up to 60 percent, and a possibility to pay an interest rate which as low as 3 percent.
  • Next Student is another great resource to use for you student loan consolidation. This progam can offer you the benefit of getting also paying 60 percent less on your loan payment as well as having lower monthly payments if you have just gotten into your job after your completion of school.

These are two of the greatest resources to use when looking for student loan consolidation programs, that are both accredited as well as providing some of the best benefits around to their clients.

Student Loan Consolidation Companies – 4 Of The Best To Use

August 26, 2011

Student Loan Consolidation Companies

There are many great student loan consolidation companies that you can you when choosing to consolidate your loans. Grouping your payments into one lump payment, which is what consoliation is, can provide you many benefits when it comes to paying off your loan, like a lower monthly payment, a chance for a lower interest rate if by chance your credit has improved since the last time you applied for the loans you have now, as well as just in general. Below will be 4 excellent programs to use when looking for student loan consolidation companies as wel as the details and benefits that come with them.

http://www.paymystudentloans.com/wp-content/uploads/2012/09/consolidating-loans-slider.jpg

Student Loan Consolidation – 4 Great Programs

Although this list isn’t limited to all the student loan consolidation companies that are out there, they have proved to stand out in the crowd because of their excellent benefits and overall experience. Here are 4 great student loan consolidation companies that you can use.

  1. Next Student – This program boasts the benefit of providing their clients with the chance to reduce their  monthly payments by 50 percent of the original total, and offers consolidation services on both fedeal and private loans. When it comes to federal loan consolidation, a credit check isn’t required so it doesn’t factor into whether you are accepted or not, and when it comes to application and orgination fees, there are none to speak of, as well as no repayment penalities. As for the private loans consolidation this student loan consolidation companies program requires that either you or a cosigner passes a credit check. The interest and other fees have been shown to vary, but are are very competitive. Another great part about this student laon consolidation comapnies option is that during your conslutation, you will be provided with a financial consultant that will assist you during the entire process.
  2. Loan Approval Direct – This is the next option when it comes to using great student loan consolidation companies. This program offers its eligible applicants benefits like providing you with up to 60 percent less on monthly payments, an interest rete as low as 3 percent, which is incredibly low, allows you to consolidate loans sums that total up to 125,000 dollars as well as doesn’t require a credit check.
  3. Student Lending Works – Out of all the student loan consolidation companies listed on this page, this is the only one that is a non profit organization. Because of this fact, you will find the lowest interest rates around as they aren’t charging you interest just to make money off you. This program offers many advantages that include, rewards which equate to discounts on your interst rates like for example, making your payments on time, and as said above, very low interest rates.

Student Loan Consolidation Companies – Conclusion

Although these student loan consolidation companies as well as consolidation in general can provide many benefits to it’s users, it can also have adverse effects that can even cost you more in the long run. The best thing you can do now before committing to a consolidation company is to shop around and remember when shopping around to compare the following aspects; the terms of the loan, interest fees as well as what the repayment fees are. By doing this you can pick out the best option for you when it comes to student loan consolidation companies, if they provide you with value and a benefit for consolidating, or if not then you will know to not use them at all.

Federal Student Loan Consolidation – Info & Programs to Use

August 26, 2011

Federal Student Loan Consolidation

If you are looking for information on federal student loan consolidation then chances are that you just graduated. so congrats!! Anyways, federal student loan consolidation is an option that millions of students have taken in order to group their payments into one lump payment. This method can is essentially a way to reduce your monthly payments by extending your repayment period. Being that federal studentl loan consolidation is different than private loan conoslidation, the follwing information will go into detail aboue the beneficial aspects that come out of it as well as the negatives that come with it.

 Federal Student Loan Consolidation

Federal Student Loan Consolidation – Benefits

  1. By reducing your monthly payment rate by anywhere up to 50 perecent or more, you will be able to afford payments a lot easier meaning you will be able to increase your credit score.
  2. For federal student loan consolidation, no matter what company you are using, you will not have provide a good credit score or a cosigner with a credit score to get accpeted because federal student loan consolidation is not based on your credit.
  3. Federal Student Loan Consolidation as said above allows you to group your payments into one payment meaning that you only have to pay to one lender each month as well as only having to call one resource when it comes to any questions you have related to your repayment.
  4. Often times, just for consolidating, your total debt is often reduced.
  5. With consolidation more often times than not comes a lower interest rate.
  6. You can also pay more than just the monthly minimum requirements, meaning that youc an pay off you debt a lot quicker as soon as you have the funds to do so.
  7. Along with not having to pay any fees to use federal student loan consolidation, you also won’t be charged a fee if you want to pay off your loan faster than normal.
  8. Federal student loan consolidation provides you with just one interest rate instead of paying multiple interest rates.

Federal Student Loan Consolidation – Disadvantages

  1. Although you are able to make smaller payments, this comes with a negative side as well meaning that you will end up paying more on the loan as well as more in interest in the long run.
  2. It will probably not save you much at all or provide you with benefits if you have already been paying your loans for some time.
  3. You will lose your grace period or whatever is left on it if you conolidate your federal loans during the time of your greace period.
  4. The benefits that you have enjoyed with your other lenders will not transfer over to your federal student loan consolidation orgaization.
  5. You can not consolidate any amount of student loans. Most federal student loan consolidation companies require that you have at lest 5,000 to 10,000 in student loan debt, more often than not over 10,000.
  6. You cannot consolidate federal loans and student loans with the same consolidator, you would have to go through different consolidation companies.

Federal Student Loan Consolidations – Companies To Use

If you feel that the benefits of federal student loan consolidation mentioned above outweigh the negatives, here are 3 great reputable resouces that you can use for conolidation:

  • Next Student – Considered the best federal student loan consolidation company around.
  • Loan Approval Direct – Another great company to use for consolidation that can provide you with payments 60 percent off.
  • Debtconsolidation.com – One of the best online resoures when it comes to federal student loan consolidation
  • Sallie Mae (Although this program is currently suspended, check in if it is activated again as it provides some of the best benefits around.