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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.