Student Loan Consolidation
What is student loan consolidation? Put simply, it is the process of uniting all of a borrower’s loans into one loan. Student loan consolidation programs exist for both federal student loans and private student loans, and many borrowers have found that student loan consolidation has removed the burden of having multiple lenders, all with varying loan balances, interest rates, monthly payments, and terms.
Through the process of student loan consolidation, the borrower only has one loan and is only required to make one monthly payment, with only one interest rate and term. This situation makes the repayment of loans much simpler and more manageable. The risk of defaulting is considerably lessened when a borrower consolidates their loans.
For the most part, federal loans are more beneficial than private loans. Ideally, borrowers should take a look at their federal loan options before taking out a private loan, especially since federal student loan consolidation programs are much easier to qualify for. They do not have such rigid requirements. For example, they do not require a credit check, and they are available to borrowers even if they are in default on their loans.
However, some borrowers find that private consolidations serve them best, and this is reasonable. In certain situations private consolidations are the greater option and can still be highly beneficial to borrowers.
Federal consolidation is available for those borrowers who have federal student loans and are not currently attending school. This program is beneficial and does not have a lot of rigid qualifying standards, so most borrowers with federal student loans find it helpful. For more information on federal student loan consolidations, please review the information we have compiled or get in touch with us.
Many private institutions offer private consolidations, which are another possibility for borrowers. Unfortunately, private loans lack many of the benefits that federal loan consolidations have, but they are still an option. For more information on private student loan consolidations, take a look at the information we have provided, or contact us.