Monday 27 August 2012

National Student Loan Consolidation


While the national cost of a higher education continues to rise, federal support in the form of grants and scholarships remains the same. Most students find that they must take out several educational loans to cover the rising costs of a college education. After graduation, if the borrower cannot find a well-paying position or has other financial difficulties, repaying his educational credits can become a cumbersome and nearly impossible task. You're life doesn't have to consist of dodging creditor's phone calls and deciding which accounts should be paid this month while all other bills fall into default. Using a national student loan consolidation program will allow borrowers to gain control over their debt and take charge of their financial future.
Opportunities Provided by National Student Loan Consolidation Programs
National student loan consolidation programs can provide a plethora of repayment prospects and opens the door to several recompense options. Most borrowers utilize such programs to decrease their monthly payment; this is easily accomplished after one lender essentially buys a borrower's credits from their current lenders and merges these accounts into one loan. Under this new credit, a borrow will have options for nearly any loan aspect ranging from fixed or variable interest rates to various repayment plans. Repayment plans are the foundation on which a loan is repaid and include the following plans: standard, graduated, income sensitive, income based, and an extended repayment plan. These also provide loan repayment length options ranging from periods of 10 to 30 years and up.
Which Loans Qualify for these Programs?
For any educational credit to qualify for national student loan consolidation it must be either in the six month grace period following graduation or currently in repayment and in good standing with the existing lender. Not all loans can be combined and federal loans must be kept separate from private loans. It is possible to merge federal loans, but this must be done through the federal government; keep in mind that not all federal loans are eligible to be consolidated together into one federal loan. Typically, private educational loans may be consolidated into one lump sum regardless of which lender originated the credit.
Loans that usually qualify for national student loan consolidation include, but are not limited to:
1. Stafford Loans (including both subsidized or unsubsidized loans)
2. Federal Perkins Loans (PERK)
3. Federal Parent Loans for Undergraduate Students (PLUS)
4. Health Industry Loans including: Health Professions Student Loan (H.P.S.L), Health Education Assistance Loan (HEAL), and Nursing Student Loan (N.S.L)
5. Federal Supplemental Loans for Students (S.L.S), formerly known as Auxiliary Loans to Assist Students (ALAS) Loans
6. Federal Insured Student Loan (F.I.S.L)
Eligibility for Student Loan Consolidation
If a borrower has one or more of the above listed loans and can benefit from the consolidation process, there are a few factors that will determine his admissibility into a national student loan consolidation program; these include, but are not limited to:
1. The borrower must be a US citizen or a qualifying non-citizen
2. The borrower must have either graduated or enrolled less than half-time at an accredited institution - he cannot consolidate while still enrolled within the program for which he is borrowing
3. All the of the borrower's existing educational credit must be in good standing with the current lender
Utilizing a national student loan consolidation program allows the borrower to more accurately regulate his finances while in educational credit repayment. Any use of this program is typically beneficial to the borrower and will result in an increased credit rating and positive relationship with financial lenders.


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