The government student loan consolidation is convenient to students and parents since it simplifies the repayment of loan. Government consolidation loans have lower monthly payments and have flexible terms and conditions for repayment.
It is important to consolidate federal student loans since it reduces the number of credit loans you may have. Credit check is also not required with the government student loan consolidation since the US government guarantees federal student loans.
Students with more than $10,000 outstanding student loans are eligible for this type of program. Private student loans can also be consolidated. However, you should not consolidate federal and a private student loan. With the private loan consolidation, you cannot forbear payments if you ever have economic hardships. Private loans are not eligible in claiming for tax deductions. Also, if the borrowers passed away, federal loans are forgiven while with the private loans, loans are passed to the next kin.
Application for government student loan consolidation is very easy. For borrowers with $10,000 to $19,999 loan balances have a repayment period of 15 years.
Federal student loans are easier to pay and bring less long term hassle and panic if these debts are converted into Federal Student Loan Consolidation. Consolidating your loan means that all the different types of student loans you acquired will be combined in one loan.
Since federal student loan interest rates are currently at their lowest, loan consolidation actually means that the interest rate used for the whole duration of your loan is fixed.
You will be able to pay the student loan off faster than when you did not consolidate your loans.
No comments:
Post a Comment