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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