Federal Student Loan Consolidation
Federal Student Loan Consolidation program is specially designed for the students have multiple student loans to manage. Many peoples have experienced that paying and manage several payments every months is a nightmare, risks of getting penalties is higher due to defer of payments.
Consolidate a multiple loans into 1 new loan make payments easier to manage and potential to reduce the debt, especially Federal Loan consolidation program.
Before decision made, there are several issues you should take consideration. Below is the guide points may refresh you mind :-
1) Interest rate - do your loans interest is variable? The fluctuation of rate is unpredictable, if you like your loan is fixed and easy to budget your financial cash flow, consolidation is one of the best way.
2) Term of payment - this is an important part you should think properly, extend the period of paying off the loan will increase the interest of the loan. At the end, you probably paying much.
3) Loan nearly paying off - if you loans are nearly paying off, it is not worth to consolidate a new loan. Take into account all those closing costs, charges. Add up all, you may paying much.
4) Monthly payment - people who have difficulty to paying monthly payments is encourage to taking Direct Consolidation Loan to avoid defaulting.
5) Multiple lenders - Do you feel ok to dealing with private, federal lenders and institutions? If no, you should consolidate your loans, just dealing with U.S. Department of Education. Dealing with 1 lender is easier to monitor and plan for monthly expenses budget.
For more information, please check out Student Loans Guide instead of Federal Student Loan Consolidation
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