Skip to: Site menu | Main content

What is this word?

Student Loan Consolidation, also called a Student Consolidation Loan, combines several student or parent loans into one bigger loan from a single lender, which is then used to pay off the balances on the other loans. Consolidation loans are available for most federal loans, including FFELP (Stafford, PLUS and SLS), FISL, Perkins, Health Professional Student Loans, NSL, Guaranteed Student Loans and Direct loans. Some lenders offer consolidation loans for private loans as well.

Welcome to Student Loan Consolidation information Site

We recommending you to visit our Student Loan Consolidation Articles section. With our articles you can learn for example, How To Get The Best Rates And Plans, What is the Option For You?, How you can save money, pay less and spend more, How to Avoid the Trap When You Consolidate Debt, What is the benefits in this field.

[ Back to top ]

Is Student Loan Consolidation Right for You?

It’s not easy being a student. You may be enrolled in an educational institution to secure a good future for yourself, but the demands of school necessitate that you sacrifice some lucrative earning opportunities for the time being. This can be very difficult considering the rising cost of living. Students have bills to pay, as well. And with their introduction to independence, a lot of them quickly realize that the first few steps towards personal liberty are not paved in a path of roses. There will be times when students would encounter some financial difficulties. Bills would be harder to meet, since most of the students’ time and effort are focused on their studies and income streams will be very limited. So what’s a student to do when financial troubles come knocking on the door.

Well, he could resort to some loans. Aside from conventional loans, a student is afforded by the government a direct loan. This direct loan is more like a “study now, pay later” plan that would allow the student a certain sum of borrowings that he could worry about when he has finished his schooling and has found gainful employment. Student loans are called direct loans because they do not require any collateral. They are subsidized by the federal government, and engaging one would be tantamount to entering a contract with the government. Now the problem…
the whole article placed on our Article section

[ Back to top ]

Student Loan Consolidation Can Help

Today’s career minded students can get help with the burden of having several student loans. One can focus on their chosen career, instead of losing sleep over paying several monthly student loan payments. Student loan consolidation can be the solution with several advantages.

How Student Loan Consolidation Works

Here is typically how a student consolidation loan works. When a student first applied for several loans from several different agencies and student loan providers, they each gave a different interest rate and term for paying back the loans. The idea of student loan consolidation, is to take all the different student loans and put them into one easy convenient loan. You them only have to make one monthly loan payment every month, instead of several loan payments every month over time. This saves the student both time and money. Having a lower interest rate and less checks to write every month are a couple of advantages of doing a student loan consolidation.

5 Helpful Benefits of Student Loan Consolidation

1. Lower Monthly Payments. Depending on your student loan situation and the type of lender you choose, you may be able to lower your monthly payments by up to 50%

2. Having Simple Loan Payments. By consolidating your student loans, you only have one loan payment per month and one check to write. This is very beneficial if you are writing several checks every month to multiple lenders.

3. Having Fixed Interest Rates. With some federal consolidation loans you can have a fixed rate for the life of your student loan. It’s best to do research to see what the best interest rates and term you are eligible for. You can check online to calculate the interest rate on a new student consolidation loan based on the rates of your current student loans. You can then round up to the nearest 1/8th of a percent of the weighted average of the interest rates on your eligible student loans.

4. Extending Your Payment Period. You may have a lot of student loan debt. With federal consolidation loans you may be able to extend the payment term up to 30 years. It’s a good idea to realize you will end up paying more interest over the life of your student loan consolidation. The idea is to get some leverage until your career takes off. You can focus on making money instead of several monthly loan payments.

5. In School Consolidation Programs. While still in school, eligible students can lock in a low rate. This would put you into repayment status, but since you are still in school, you are automatically put into deferment. The drawback of consolidating your loans while in school, is that you lose your 6 month grace period. The solution to this would be to request forbearance for up to 1 year on your student loan consolidation. Here again you can do some research and get more information online.

Student Loan Consolidation Help Online

With today’s Internet technology, you can get a student loan consolidation quickly and easily. The Internet makes research and finding great programs, easy as a few clicks of the mouse. You can learn everything you need to know from information sites that provide the latest news and data in regards to student loan consolidation. With just a few clicks of the mouse, you now can get loan quotes and compare loan companies without having to run all over town.

Student Loan Consolidation Helps Relieve Stress

Student loan consolidation can help student loan borrowers focus on their education, instead of debt. With a single new loan and lower monthly payments, you can focus on what’s most important, education and your new career. There is no need to lose sleep stressing out about how you’re going to pay back all those student loans. There are several agencies and companies online that can help with many resources and information to get the help you need.

[ Back to top ]

Student loans bear biggest part of budget-cutting plan

For students, the upshot is mixed. Excessive government payments to banks would be halted, freeing up some dollars for new grants, larger loan limits and reduced loan fees. But overall, the student loan program would endure the largest cut in its history, and most of the money would not be pumped back into education. Instead, under a plan the House approved Monday, the money would be counted only toward reducing the federal deficit.

"At a time when the entire country believes we need to make higher education more affordable, Congress is trying to balance the budget on the backs of students," said Jasmine Harris, legislative director for the United States Student Association. Parents who take out loans on behalf of their students would pay higher interest rates. And other parts of the college package could indirectly drive up costs for students, if banks pass on new expenses or offer less attractive loans as their profit margin shrinks.

"You don't want to say the news is all bad. It's a decidedly mixed bag," said Terry Hartle, senior vice president of the American Council on Education, the largest coalition of colleges and higher education groups in the nation. "But on balance, one comes to the conclusion that this is a sad step in the history of the student loan program," Hartle said.

The $12.7 billion in college cuts are part of an effort, led by conservative Republican lawmakers, to show discipline with the public's money. But Democrats say GOP leaders only want to pay for tax cuts, all the while eroding the ability of parents to pay for college. The timing of Senate action was unclear. Colleges and university associations scrambled Monday, urging the Senate to reject the bill as the Congress tried to end its 2005 work.

Within higher education, the single biggest cut appears to be in the profits of lenders. Under current law, banks get to keep the excess money when the amounts that students pay in interest exceed the rate of return that the government has guaranteed. That would end. Lenders would have to refund the difference to the government, meaning billions of dollars.

"We were able to reduce spending through changes in the way lenders operate," said Mike Enzi, R-Wyo., the chairman of the Senate education committee. "But at the same time, we shielded the direct impact to students, and actually increased student opportunities." The interest rate for parent loans would increase to a fixed rate of 8.5 percent in July. It is now a variable rate and had been set to move to a fixed rate of 7.9 percent.

Meanwhile, the interest on students loans would also move to a fixed rate of 6.8 percent in July, up from its current variable rate of 4.7 percent. But that change was already set to happen under law, and the deficit-reduction bill does not alter that plan. Student groups tend to support a fixed rate as a protection against unstable, rising interest rates. Loan limits would increase from $2,625 to $3,500 for first-year students, and from $3,500 to $4,500 for second-year students. The total borrowing limit allowed for undergraduates would remain at $23,000. Lawmakers aimed for a compromise of letting students borrow more at the start of college, reflecting current needs, without sanctioning a bigger overall debt.

The bill would offer grants to poorer, high-achieving students in the first two years of college and older undergraduates studying math, science or high-demand foreign languages. John Boehner, R-Ohio, the chairman of the House education committee, said the bill "offers significant new benefits to students pursuing a college education." But critics said the size of those benefits doesn't come close to offsetting the cuts.

Said Bob Shireman, director of The Institute for College Access and Success: "Overall, there will be less money out there for helping students pay for higher education. And it's not being returned to the system, except in some small ways."


Also we recommending you to visit our tips section and listenseveraluseful advices from our experts.

We will be glad if you will add our link to your website. Please add a link here, even temporarily, from your webpage or weblog.we have included the HTML code below for an easy copy-paste:



Thank you very much

Student loan consolidation programs and information for federal and private student loans.

[ Back to top ]