Many students and parents cannot afford the rising costs of a higher education. Majority of these students have manifold student loans. These loans belong to different creditors. These creditors have different terms of agreement, interest rates and billing cycles. The loan allows students to have these loans turned into one new loan. This new loan would be handled by one creditor.
When students think choosing a loan consolidation creditor they need to think the creditor's requirements, terms of agreement, interest rates and benefits. Student loan consolidation has two methods; these are Federal and underground loan consolidation. Most underground creditors recommend you to first apply for a Federal student loan consolidation to maximize federal benefits.
assess student Loan Consolidation Programs
Federal loan is when the U.S. Government or the U.S. Division of education is the creditor. Federal student loan consolidations are specifically created for low-income students and parents. There are two programs available for Federal Loan Consolidation: Federal family education Loan agenda (Ffelp) and Federal Direct Student Loan agenda (Fdlp). These programs concentrate federal loans including Stafford Loans, Federal Perkins Loans and Plus Loans.
For a student to be eligible for federal loan consolidation the following would be checked or required:
- Credit history would be checked.
- A student would need to be a U.S citizen or a permanent resident.
- The student must be whether a full or half-time student.
Federal loan limits are set by Congress. These are the limits as follows:
- Year 1: ,625
- Year 2: ,500
- Years 3 & 4: ,500
- Graduate ,500
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