| If you're pondering whether or not to consolidate | | | | the most popular type to consolidate. Stafford loans |
| student loans, consider this; all college loans have | | | | have a variable interest rate like the PLUS loan, making |
| unique attributes, and not all may be perfectly suited | | | | refinancing a smart choice. Loan consolidation can |
| for student loan consolidation. Student loan | | | | reduce the repayment amount by up to 63% if |
| consolidation is, in most cases, an outstanding option | | | | refinanced through the right lender. |
| for reducing monthly payments, locking in low rates, | | | | Like the Perkins Loan, the Stafford Loan also offers a |
| and earning opportunities to shave money off your | | | | few forgiveness programs for those in certain |
| loan balance with lender incentives. When you | | | | teaching positions and other various public service jobs. |
| consolidate student loans, you lock in the current | | | | Check to see if you're eligible for any forgiveness |
| interest rate by allowing the lender to repay the entire | | | | programs before applying to consolidate student loans. |
| amount, then repaying the lender free from | | | | Health Professions Student Loan (HPSL) - Consider |
| government interest rate fluctuations. | | | | before refinancing |
| PLUS Loan - Good Choice for Student Loan | | | | The HPSL loan for medical professionals is a fixed |
| Consolidation | | | | rate loan like the Perkins Loan. The HPSL comes with |
| Like many college loans, the PLUS loan (Parent Loan | | | | certain deferment options that may be lost after |
| for Undergraduate Students) is a type of federal loan | | | | consolidation. |
| with a variable interest rate. This means that the | | | | The HPSL offers a 3 year deferment period designed |
| monthly payment will change when the government | | | | to give relief to medical professionals during residency. |
| reconfigures the interest rates annually (July 1). | | | | This deferment option may or may not be lost after |
| The interest rates on PLUS loans are generally higher | | | | consolidation. Those who have HPSL college loans |
| than other types of college loans so when interest | | | | should inquire with various lenders about deferment |
| rates increase, PLUS loans can be greatly affected. | | | | options. |
| Since college loans are consolidated by social security | | | | Direct Loans - Good Choice for Student Loan |
| number, parents should apply separately for PLUS loan | | | | Consolidation |
| consolidation. | | | | Some schools offer Direct Loans, meaning that the |
| Perkins Loan - Consider before refinancing | | | | money given to students comes directly from the |
| The Perkins loan is a fixed rate loan and has some | | | | federal government, not through a private lender. |
| unique benefits that can be lost with a student loan | | | | Borrowers who obtain these college loans must first |
| consolidation. The Perkins loan has a forgiveness | | | | consolidate through the Direct Loan program, but then |
| program that will waive all or part of the repayment | | | | have the opportunity to shop around for lower interest |
| amount if the borrower works in specific occupations | | | | rates. |
| that provide a valuable service to the community. | | | | Beginning July 1st 2006, borrowers will face much |
| Some such eligible occupations are teachers in low | | | | stricter regulations when consolidating Direct Loans. |
| income areas, nurses, and medical technicians. | | | | After the 1st of July, borrowers will only be able to |
| If you're not eligible for the various loan forgiveness | | | | switch lenders if their current lender does not offer a |
| opportunities offered by the Perkins loan, there is still | | | | student loan consolidation with an income sensitive |
| another point to consider. Because the Perkins loan is | | | | repayment plan. |
| a fixed rate loan, and because the interest rate on a | | | | The two most popular types of loans are the Stafford |
| student loan consolidation is determined by the | | | | Loan and the PLUS Loan which is the reason it's so |
| weighted average of the other loans, you could | | | | popular to consolidate student loans. Many students |
| actually pay a small percentage more on a | | | | acquire a variety of college loans that may not be |
| consolidated Perkins loan over time. | | | | beneficial to consolidate. Student loans are not all |
| Stafford Loans - Good Choice for Student Loan | | | | created equal. It's important to understand the unique |
| Consolidation | | | | qualities of your individual loans and work with your |
| Stafford loans are the most common loans, and also | | | | lender to determine the option that is right for you. |