Student Consolidation Loans Guide



Do you know that student consolidation loans program is not just for students, but parents as well. But student and parent are not allow to combine the loans through consolidation, only loans from the same borrower can be consolidate. Last time combination loans from spouse are permitted, but this provision was repealed effective July 1, 2006. Because some married students divorce after several years of repayment, the loan could not be separate.

Advantages of Consolidating

1) Repayment period ranges extend from 10 to 30 years.

2) Credit check is not required, except for Direct Loan consolidation PLUS borrowers.

3) Home loans, business loans will always have fees charges during application while there are no application fees or prepayment penalties are charged for education loan consolidation.

4) Interest rate is fixed and will be a maximum of 8.25 percent.

5) Lower your monthly payments by term of the loan extended.

6) Due to the interest rate been less down, much money could be save. If borrower maintain the same monthly installment amount will shorten the term.

Disadvantages of Consolidating

1) Extended loan term means that many more payments will be made

2) All loan benefits such as rate discounts, deferment, rebates, income sensitive payments and loan cancellation options may not be available for consolidated loans

3) Borrower must begin repaying the consolidation loan usually within 60 days

4) Overall cost of the loan will be drastically higher with a longer repayment period

5) FFEL Consolidation Loan borrowers forfeit any remaining grace period on their loans

For more consolidation loan information, please check out Private Student Loan Consolidation instead of Student Consolidation Loans

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