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Student Loan Consolidation |
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Contributed by Alex Robb
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College student frequently hear the discussion about the wonders of
student loan consolidation. What are the perks? Is it
really great?
Our Definition for Student Loan Consolidation:
Combining all student loans into one with the same, low interest rate.
What is a Federal Consolidation Loan?
A Federal Consolidation Loan repays some or all of your outstanding
federal student loans, and reduces the multiple monthly payment with a
single student loan payment. Your repayment term will likely be
extended to make your monthly payments more affordable; should the
event arise, you may always prepay your loan with no penalties. The
interest rate on the consolidation will be a fixed rate for the entire
term equal, which is good.
Are these loans legal?
Of course they are, they were established by Congress for stressed out college students like us.
Which loans can I consolidate?
Here’s a list. Check with the provider to see any additions or changes:
- Federal and Federal Direct Stafford (subsidized and unsubsidized, also known as Financial Aid)
- Federal and Federal Direct PLUS SLS (Supplementary Loans for Students)
- Federal Perkins Federal Nursing Student Loans (NSL)
- Federal Health Education Assistance Loan (HEAL)
- Federal Health Professional Student Loans (HPSL)
- Health Professions Student Loans (HPSL)
- Loans for Disadvantaged Students (LDS)
- Federal Insured Students Loans (FISL)
- Federal Consolidation Loans Federal Direct Consolidation Loans
I’m still in school, Can I consolidate now?
If you’re an undergraduate, you’ll have to wait until you’ve
graduated. If you’re a graduate student, you can consolidate your
undergraduate loans. If you’re in a post-graduate program (such
as a medical or law degree), you can consolidate both your
undergraduate and graduate loans.
After I’ve found a provider, what do I do while my loans are being consolidated?
Continue to make those monthly payments. If you don’t, you’ll complicate the process and may delay the consolidation.
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