Student Federal Loan Consolidation – Your Friend In Need Indeed

You can reduce your debt burden up to 60% by adopting student federal loan consolidation. This is a program for all students who wish to consolidate their various loans into a single installment. Students need money constantly to finance stationery, tuition fee, travel, research, boarding and lodging and other necessary expenses. From time to time, they have to take loans from whatever sources they can garner. However, most of the times, they have to pay exorbitant rates of interest on the borrowed amount. The biggest advantage with this loan is of rate reduction, which is not available elsewhere when you take loans from other lenders. You can get interest rate reductions up to 60% through federal loans.Universal AcceptabilityAnother benefit of this program is that almost all lenders are ready to accept a federal loans. Not only that, most lenders are willing to give additional benefits like no credit check and no co-signers required which is a great advantage for those students who have defaulted in payments earlier. Moreover, when you take a federal loan consolidation you can pay your loans in a longer term. You have the option of repaying your loans within 10 to 30 years. This also depends on the amount of loan you are taking and your previous record of repayments.When you take these loans for a longer duration, you can reduce your monthly installment to a very small amount. In this way, you can easily pay off the installment every month and at the same time over the years you can reclaim your lost credit and credit ranking due to non-repayments or delayed payments in the past. Student debt consolidation also helps in tax deductions while paying income tax. Moreover, when you start paying your loan installments on time you also become eligible for many incentives and rewards offered by the lending agencies.An outstanding amount of $7,500 or more is considered applicable for loan consolidation. If your requested amount exceeds this limit, you should apply for student federal loan consolidation. The U.S. government gives conditional support to these loans. In case of genuine inability to repay the borrowed amount, the government pays the money of federal loan on behalf of the student, to the lender, and then recovers the amount due from the defaulting student. Federal Stafford loans, FDL, FPL, HPSL, NSL, FISL, ALAS, SLS, NDSL, HEAL, and LDS, are few loans that qualify for student federal loan consolidation.