Compare consolidation loan student
This is a fixed-rate refinancing program. All the existing federal student loans are combined into a single loan. The monthly student loan payment is decreased by 53%. Only a single payment is required per month. The credit rating is improved. Under this consolidation program, the repayment period can be increased from the standard 10 years up to 30 years. This depends on the amount of education debts.
As there is a low monthly payment, the student has more money for other expenses like car payments, housing expenditure and career-related expenses. There are no penalties for overpayment. So, it is possible to make larger payments and decrease the repayment term.If consolidation is done in the grace period, the interest rate is decreased by 0.6%. This consolidation does not need application charges, fees or credit checks.
Federal loan consolidation may include direct loan consolidation, PLUS loan consolidation and Federal Stafford loan consolidation. All Federal FFELP and direct loans as well as HEAL loans and Perkins loans taken to pay for the education are also included in Federal loan consolidation.
In the year 2006, the interest rate for Stafford loans for students in grace was 6.62%. The interest rate for Stafford loans for graduates in repayment was 7.72%. The interest rate for Parent PLUS loans paid out before 1st July 2006 was 8.02%. The interest rate for Parent PLUS loans paid out after 1st July 2006 was 8.50%.The consolidation loan rate was the weighted average of the existing rates on loans that were considered in the consolidation.
Private Student loan consolidation
A Private student loan consolidation combines all the private student loans into a single manageable loan. This results in considerable low monthly payments. In the first year, the monthly payment amount is decreased by almost 45%. There are no application fees or prepayment penalties. The online loan application is speedy and convenient. There is a conditional pre-approval decision. This is given within a few minutes by phone or online.
If the student opts for automatic checking account withdrawal, there is a reduction of 0.25% in the interest rate. The interest payments might be tax deductible. For this the tax advisor may be consulted. For the first twenty four months of repayment, there are interest only payments.
Application for private consolidation loan is very simple.Any college student having an existing and nationally marketed private student loan is eligible to apply. For application, any out of pocket expenditure does not exist.
It is not possible to consolidate federal student loans along with the private student loans.If the federal student loans are consolidated before the private student loans are consolidated, the credit score of the student improves and a better interest rate may be fixed.
In the Private Student loan consolidation, during the first year of the loan, a decreased interest rate is offered. The rate is 3.65 to 4.00% lesser than the full loan interest rate.Due to this the student can begin his career and get established till the loan accrues interest at a low rate.
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