Student Debt Consolidation
Have you taken out student loans? If you have, then maybe you would like to opt for student debt consolidation. This is basically the kind of arrangement where all your student loans will be merged into one. By opting for this arrangement, you will only be liable to pay one loan. Many people are of the opinion that student debt consolidation can offer debt relief to the borrowers and if you want to get some relief, then maybe you should consider merging all your loans in to one single loan.
You should know that this is the kind of arrangement where only student loans are merged. It is not possible for you to merge other loans that are not taken for educational purposes. You must be wondering why you should choose to consolidate when you can easily pay off the loans separately. The thing is: consolidation will combine all your student loans so that you will only be liable to pay one loan instead of several loans. This will decrease the monthly repayment amount. There are also cases when the loan period will not increase even when the monthly repayment amount decreases.
One of the main reasons why you should opt for student debt consolidation is that you will not have to worry about the variable rates of interest. This is because under this program, you will only have to pay a fixed interest rate. Of course, the rate of interest that will be applied will depend on many factors like the rate of interest that you are paying at present, the amount of loan that you have taken, the amount that you still owe, etc.
As per the Student Consolidation Program, the following loan can be merged:
A student loan taken from the Department of Education. FISL or Federally Insured Student Loans. Student Consolidation Loans. Nursing Student Loans. Federal Stafford Loans (unsubsidized). PLUS or Federal Parent Loans for Undergraduate Students. Federal Perkins Loans. NDSL or National Direct Student Loans. SLS or Federal Supplemental Loans for Students. Health Professions Student Loans. Direct Loans for students.
Some of the reasons why you should consider opting for student debt consolidation are:
All the loans will be merged in to one and you will have to pay a lower interest rate. The rate of interest that you will have to be will be fixed. The amount of money you repay every month will reduce. You will get debt relief as you will only have to be liable for one single loan.