Title: Organize Your Finances Through Student Loan Consolidation
Source: http://financeequityloans.com
Category: student loans
Article body:
Before you choose to opt for a student loan consolidation curriculum, let us try to know the types of Student Loans available.
Federal Loans
This loan is sanctioned by the U.S. education authorities and is usually approved easily. Here are the different types of Federal loans that are eligible for student debt consolidation. But, they can be widely categorized below
Federal Perkins Loans
Stafford Loans
PLUS Loans
Features
Federal Loans are tax deductible thereby giving you the advantage of increased cash in hand.
These loans offer the gift of deferred payments incase you choose to become a student again.
Federal Loans might be excused in extraordinary circumstances.
Federal loans come with a guarantee or reliability of the US government.
Private Loans
Private loans are those that are offered by private banking institutions or specialized student loan consolidation companies for the purpose of education. The interest rates are high. It is advised that students refrain from taking these loans unless necessary. Credit history plays an vital role here. If the student or his family has a poor credit rating score, the chances of getting a good deal are slim. Moreover, the interest rates and the fees are very high. In some cases 10 times privileged than that charged by the Federal loan providers! Besides, unlike the federal loans, in private student loans, you will not get any tax relief.
Criteria for Student Debt Consolidation
Not every loan is eligible for federal loan consolidation. Here are some of the main criteria for eligibility
The borrower must be out of school or college
The federal loan repayment must have started or be in its grace period.
The consolidated loan amount should ideally be above $10,000.
Advantages of Federal Loan Consolidation
Always remember to keep federal and private loans separate. Consolidate all federal loans into one curriculum and all the private loans into a further. The main advantage of student federal loan consolidation is,
Multiple loans are being merged into one.
You are free from keeping a footstep of all the due dates and the corresponding installments.
The consolidated monthly payment is considerably less than that what you would have paid otherwise. In some cases, you can save up to 45%!
You get to show an improved credit rating as you have just one loan and one creditor to take care of.
On choosing the best student debt consolidation curriculum, you are paying less every month. You have more cash at your disposal
You can stretch the repayment over a period of 30 years!
Whatever may be your choice, student loan consolidation or individual payments, always remember that committing to a loan is a serious matter. Only take what you can give back!