| Federal Consolidation Student Loan is a program under | | | | 4. Retrieve an In-Progress Saved Application (not |
| which students are allowed to consolidate their | | | | submitted) |
| different loans into one single debt. This will facilitate | | | | Disadvantages of Consolidating Your Student Loans |
| their ability to get their monthly payments reduced with | | | | 1. On taking an extended payment plan through this |
| an extension of terms. Consolidation loans, unlike other | | | | loan consolidation, you have to pay more interest in the |
| loans, have a fixed rate of interest for the whole life | | | | long run which cost a lot of money and a negative |
| term of the loan ranging from 10-30 years. | | | | impact on your financial future. |
| Eligibility Requirements | | | | 2. Rate of interest will be higher on loan consolidation |
| Students are eligible for two types of student loan | | | | when compared to other loans. |
| consolidation. | | | | 3. Consolidation may not be worth it if you already |
| (1) Federal Direct Student Loan Program offered | | | | paid-off a big part of the loan. |
| through Department of Education and | | | | Benefits of Consolidating your Student Loans |
| (2) Federal Family Education Loan Program offered by | | | | Consolidating multiple federal student loans into a single |
| government through private lending companies. | | | | loan has so many benefits; some of which are: |
| However, students are eligible for consolidation of their | | | | 1. Students can manage their debt easier by being |
| loans only once they have either graduated or left. | | | | responsible to a single lender and a single monthly |
| A student is eligible for loan consolidation when | | | | payment.-this helps them to keep proper records and |
| 1. He or she is no longer enrolled in school (being | | | | maintenance more effectively. |
| enrolled less than half time) | | | | 2. Students can choose their own payment options i.e. |
| 2. He or she must be in the "grace period" of the loan | | | | repayment plan such as standard, graduated, |
| or must be making the loan repayment regularly. | | | | extended, Income Contingent, etc. |
| 3. A typical loan amount of $ 10,000 is required | | | | 3. There is no fee for loan consolidation nor any |
| How to Apply? | | | | minimum amount of students required for qualification. |
| Gather all information by searching online. | | | | 4. Students who consolidate their loans can have |
| 1. Have ready the application, Promissory Note, | | | | extended deferment options even after exhausting |
| Introductory letter & instructions | | | | these options before. |
| 2. Apply online and E-sign your Promissory Note. | | | | 5. Lower monthly payments |
| 3. Print, sign and mail your Promissory Note | | | | 6. Students can obtain subsidies on their student loans. |