Consolidation debt loan student
With the rising cost of education students are finding it difficult to pay off their student loan and are hence under the burden of debt. For such situations both the government and the private institution have come up with student loan debt consolidation programs. The debt consolidation programs can be considered as ways in which students can reduce their burden of debt and pay off the loan in easy installments over an extended duration of time with easy payment options. Moreover the student is required to make only one payment towards the debt consolidation loan instead of making different payments towards different loans.
Federal student loan debt consolidation
These loans are sponsored by, the U.S. Department of Education Federal Student Aid Program. These are easier to qualify for and provide a number of advantages. The interest rates with these federal student loan debt consolidation programs are very low and available at fixed rates.
When taking a federal loan consolidation the student can consolidate all the student loans into a single payment. The federal loan consolidation would work regardless of the fact whether you have taken the loan under different programs. The federal loan consolidation has typically four payment options and you can take the one according to your needs.
- Standard Repayment Plan: with this student debt consolidation plan you can pay off the student loan debt over a period of 10 years. The interest rates on these loans are fixed and payments for these loans are calculated by dividing the loan amount in that period of time at a fixed rate.
- Extended Repayment Plan: with this plan the repayment is same as the standard repayment plan but the payments can be extended for 30 years.
- Graduated Repayment Plan: with this plans you can pay the loan in similar way as the extended repayment plan but the only difference would be that your monthly payments would increase every two years.
- Income Repayment Plan: with this plan the monthly payments are not fixed. It would be decided based on several factors like the amount that you are supposed to pay, the income level, the size of your family, etc. the repayment period on this plan can go up to 25 years.
These loans have several advantages like:
- Lower interest rate on the loan instead of the higher interest rate that is being paid on the student loan.
- The borrower can avoid paying the penalties on the student loans that is charged in case of non-payment.
- Avoid the hassles of paying to a number of lenders and can have payments made to a single lender.
Private student loan debt consolidation
Student loan debt consolidation can also be obtained from different private financial institutions. Usually the lenders from whom you take the private student loans would have debt consolidation loan offers also. Before you start looking for other options you should check with your lender. The interest rate charged on these loans is also low and you can get better payment options. This means that on a long repayment options you can save a lot of money. However, with private student loan debt consolidation the interest rates differ from one lending institution to another and hence you can have a varied range of choice.
These days applying for these loans with private lenders, has become very easy. The lenders have started giving out these loans online and hence you are just required to fill out the application on their web site and submit it. They give better options to people who find it difficult to visit the lender and then fill the loan application. However, before you take the student loan debt consolidation from private lenders you should make sure that you have compared offers from different lenders so that you can be assured that you are applying for the best rates.
Lenders for student loan debt consolidation
There are a number of student loan debt consolidation programs with private lenders. Most of the private lenders also give out the federal debt consolidation loans. some of the lenders for student loan debt consolidation are mentioned below.
One Simple Loan:
They provide federal student loan consolidation programs. Their program can reduce your payments by as much as 42%. They do not carry out any credit check so you can apply for their loan without any hassle. You can contact them at One Simple Loan; 4023 Tampa Road, Suite 2400 ; Oldsmar, FL 34677; Phone: 1-877-663-7467 ? Fax: 813-436-5550 ? consolidate@onesimpleloan.com for more details.
Student Loan Consolidator:
This company was founded in 1998 and provide federal student loan debt consolidation programs. They are located in Quincy, Massachusetts. Their loans are funded by Student Loan Xpress and serviced by Xpress Loan Servicing (XLS) based in Cleveland, Ohio. They also work extensively with Indiana Secondary Market (ISM), American Education Services (AES/PHEAA), and Pacific Loan Processors (PLP). You can contact them at The Student Loan Network, 1250 Hancock Street, Suite 703N, Quincy, MA 02169, Toll-free : (877) 328-1565, Fax: (617) 328-0615
Direct Loan Consolidation:
They help students in combining one or more of their federal loans into one payment option. You can choose from any of the four different payment plans the one that suits you. There is no limitation on minimum or maximum loan amounts or fees. You can fill out their online application to get details about their loan options.
Law School Loans:
They are dedicated to helping law student?s pay off their loans. They give student loan consolidation at low rates and there is no income verification or credit check. They do not charge any prepayment penalties. You can contact them at 1050 Connecticut Avenue NW, Suite 1000; Washington, DC 20036; phone: (800) 659-8344.
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