Type of Student LoansStatements> provide financial assistance to those who are enrolled in schools participating in federal assistance programs. Thanks to school, we mean two years or four-year degree granting college or private public school, university or business school.
Consolidation can help reduce your debt by fixing and reducing the interest rate on your loan. Option loans are also incorporating a separate loan for debt packages so that managing your debtspayment option.
Requirements for federal loans:
To benefit from the consolidation of the federal government, we must consider the following points before signing it.
Candidates must not go to school (defined as enrolled less than half the time)
You must be a grace period of "active debt or pay your debts.
Most consolidation companiesrequire a minimum loan amount of $ 10,000 is typical.
Loan Type Federal Government:
Federal Family Education Loan Program: This is a public-private loan designed to provide and supervise loan guarantee education to parents and students. It provides the following types of loans for post-secondary education:
Stafford Loan: Stafford loan consolidation is a refinancing to fixed rate Programs that combine all your federal loans into new loans there.
PLUS loans: PLUS loan consolidation is another form of federal student loans that allow you to consolidate all your loans MORE previously taken for financing the education of your child in a single loan with lower monthly payments.
Graduate Stafford Loan> Statements: Stafford loan consolidation graduate is a financial tool ideal for those who just finished and try to repay their loans Stafford graduates.
Federal Consolidation Loans Direct loan consolidation direct federal reimbursement is a practical tool that allows you to combine all federal student loans direct loan you one. Direct federal loan consolidation offer the following options:
Consolidation direct federal loan subsidized student loans · Thiscombines eligible for interest subsidies, such as subsidies FFELP, Direct Loan and Federal Perkins loan.
Direct · Consolidation loans are subsidized: the federal student loans Thiscombines are not eligible for interest subsidy. If> Credit adoption subsidies, then you are eligible for subsidized Direct Loan consolidation.
· Direct Consolidation Loan PLUS PLUS PLUS Thiscombines FFELP and Direct Loans.
benefits of federal loan:
Various benefits can be withdrawn if you selected federal programs. Some of them are listed below:
Reduce monthly payments
Provide a fixed interest rate
You only pay once a month
improve credit rating
Offer flexible payment options
There is no prepayment penalty
Lack of consolidation federal government loan:
In comparison with the advantages, disadvantages of grouping small listed below:
It took a long time to repay
Increase the number of total> Debt
Locked interest rate means that if interest rates fall, your rate will not reduce / change
Loss of benefits (if any) of the previous loan
. Private loans 2:
The purpose of the consolidation of private debt is more or less the same as the consolidation of the federal debt, but the various techniques and features. It's just unbelievable to combine private educationloans into one package. personal loans to cover educational expenses such as education, housing or other educational expenses.
Requirements for a personal loan consolidation;
Because there are rules for eligibility to benefit from the consolidation of federal loans, such as private debt levies some of the rules in each of the applications received for the necessary permits. These standards are listed below
Participants must be enrolled in atleast half graduation technical
Have at least $ 10,000 in private education loan
Is the payment status of loans to private education at the time of application
Having a good credit rating
Having proof of residency and income flows
Private BenefitsDebt>:
Increasing the payment history and credit score
Provide a competitive interest rate on non-government loans
It provides a way to integrate all non-federal education and personal loans almost
Used to strengthen the debt related to education and studies relating to credit card debt
You can write fewer checks and may also reducea monthly payment
A longer repayment term (up to 30 years in some cases)
Lower monthly payments
The federal debt in private – Differences:
Federal loan consolidation is a tool to refinance private loans federal consolidation student debt if it is a way to refinance private student loans only. The main difference is thatconsolidation loans from the federal government come with fixed interest rate, while the consolidation of private loans come with a market price that can be fixed or variable.
If you combine both private and federal loans, you should be sure to separate them, ie refinancing federal loans with private loans are likely to raise interest rates higher, compared to the amount you pay to keep theirseparately.
Our advice: thoroughly research all the options first consolidation, and then choose to consolidate your student loans.
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