Education Loan Consolidation – A Primer

If you have become weighed down by having to scrape together the money to make payments on student loans several times a month, you may have an alternative which will not only simplify your life; it may save you a considerable amount in interest payments. An education loan consolidation will allow you to combine all your student loans into one, relieving you of the need to try and keep up with all of them. And you may be able to find a lender who offers better interest rates on a single education consolidation loan than the average interest rate for your multiple student loans.How To Apply For An Education Consolidation Loan
In order to apply for an education consolidation loan, you’ll need to present an accurate record of your existing student loans. You can find the information you need at the website of the National Student Clearinghouse, at http://www.nslc.org. You can apply for an education loan consolidation at any credit union or bank which belongs to the Federal Education Loan Program, or FELP. The US Department of Education is another great source of information.If only one lender has been responsible for issuing each of your student loans, you will be required to arrange an education loan consolidation from that lender. And there are warning signs that someone offering you an education loan consolidation may not be legitimate. Avoid any lender who asks for up-front fees or tells you they want you to submit to a credit check. No education loan consolidation lender who is on the up-and-up will require either of those.Requirements For Applying For An Education Consolidation Loan
Requests for the consolidation of federal student loans are almost always accepted. They can be done even if the applicant is still in school, or changing status from full-time to part-time student. Education loan consolidation done while you remains a student or within six months following your graduation will generally have more favorable interest rates than those you delay beyond that period.If you decide to go for an education loan consolidation while you’re still a student, you must inform the lender that you are asking for early repayment status. This will guarantee you a lower interest rate, but will mean that you have to begin repaying the education consolidation loan immediately. If necessary, however, you can ask for an in-school deferment which will push back your payments on the loan until after you have graduated.You should take the time to find the best terms you can in applying for an education loan consolidation, because you may only consolidate your student loans once. You will probably not be able to consolidate any student loans which do not total at least $7500, and it is your responsibility to initiate and follow through on consolidating your student loans. You may, however, be able to get a list of trustworthy lenders from your college’s financial office.