Federal Consolidation Student Loan is a program under which students are allowed to integrate their separate loans into one single debt. This will facilitate their ability to get their monthly payments reduced with an postponement of terms. Consolidation loans, unlike other loans, have a fixed rate of interest for the whole life term of the loan fluctuating from 10-30 years.
Eligibility Requirements
Federal Consolidation student Loan - Advantages and Disadvantages
Students are eligible for two types of student loan consolidation.
(1) Federal Direct Student Loan program offered through group of instruction and
(2) Federal house instruction Loan program offered by government through underground lending companies. However, students are eligible for consolidation of their loans only once they have whether graduated or left.
A student is eligible for loan consolidation when
1. He or she is no longer enrolled in school (being enrolled less than half time)
2. He or she must be in the "grace period" of the loan or must be manufacture the loan refund regularly.
3. A typical loan amount of $ 10,000 is required
How to Apply?
Gather all information by searching online.
1. Have ready the application, Promissory Note, preliminary letter & instructions
2. Apply online and E-sign your Promissory Note.
3. Print, sign and mail your Promissory Note
4. Retrieve an In-Progress Saved Application (not submitted)
Disadvantages of Consolidating Your Student Loans
1. On taking an extended cost plan through this loan consolidation, you have to pay more interest in the long run which cost a lot of money and a negative impact on your financial future.
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