Consolidating Student Loans
Lower Your
Monthly Loan Payments with Student Loan Consolidation
Though they can be a great way to finance your education,
student loans must eventually be paid back. After graduation,
you may find that your loan payments are more than you can
handle. If this is the case, or if you just want to save money,
you may want to consider consolidating your student loans.
Why You Should Consolidate Student Loans
By consolidating student loans, you can bundle all of your loans
together into a single loan, which means that you will have only
one lender and one payment to deal with. Student loan
consolidation also gives you a chance to lock in at a low
interest rate, which can save you a great deal of money over
time.
The Cost of Consolidating Student Loans
If you consolidate your student loans, you can significantly
lower your monthly payments by as much as 60 percent.
Unfortunately, you may end up increasing the total amount that
you will pay over the life of your loan. Before consolidating,
you should carefully evaluate the interest rate and the loan
terms. You should also take time to compare lenders.
Federal Loans Eligible for Student Loan
Consolidation
Many federal student loans already have a low interest rate.
However, you may be able to achieve a lower payment by
consolidating these student loans. Here is a list of federal
loans that are normally eligible for student loan consolidation:
-
Federal
Stafford Loans
-
Federal
Direct Loans
-
Federal
Perkins Loans
-
Federal
Supplemental Loans for Students (SLS)
-
Federally
Insured Student Loans (FISL)
-
National
Direct Student Loans (NDSL)
-
Federal
Parent Loans for Undergraduate Students (PLUS)
-
Loans for
Disadvantaged Students (LDS)
-
Auxiliary
Loan to Assist Students (ALAS)
-
Health
Education Assistance Loan (HEAL)
References and
Links
National Center for Education Statistics
Consolidation recommendations of the University of Michigan
Law School
School loan consolidation - Information on eligibility and
rationale for consolidating (or not consolidating) your student
loans.
Student loan consolidation programs - A variety of specific
options, including loan companies and different types of
student loan consolidations.
Private Student Loans,
PLUS loans and
Stafford Loans - information on different financial aid and
student loan options.
Studentloanconsolidator.com
www.loanconsolidation.ed.gov
www.studentloanconsolidator.com
www.finaid.org/loans/consolidation.phtml
www.chasestudentloans.com
www.debthelp.com
www.nslds.ed.gov/nslds_SA/
www.edfed.com
www.amsa.com/bor/repaying_your_loan/consolidation/index.cfm
