Federal Student Loan Consulting
  • STUDENT LOANS 101

Student Loans 101 /
Direct Loan Consolidation
/

BENEFITS OF CONSOLIDATING YOUR STUDENT LOANS
​What Is Loan Consolidation?

Quite simply, it's ​one loan, which = 1 payment too one lender.

ADDITIONAL BENEFITS

- Multiple Repayment Plans


- Deferment/Forbearence Options Increase


- No Minimum/Maximum Debt Amount


- Protect Your Credit


- Setup Automatic Debit


ONE PAYMENT

- Consolidation means combining all your federal loans into one. That loan will be serviced by one lending institution and requires one monthly payment. If you still send payments through the mail, this will save you some money on stamps and envelopes, not to mention saving a whole lot of time and aggravation.

AVOID DEFAULT

- Consolidating your loans will give you the benefit of 'Default Aversion'  if you are struggling to make your payments each month. If you default, your credit score will take a major hit, and it remains on your credit report for seven years.

FIXED INTEREST RATE

- If you have a lot of loans, you probably have a lot of different interest rates. A consolidated loan has a fixed rate for the life of the loan. The interest rate on a consolidated loan is based on the average of the interest rates on all the loans being consolidated, rounded up to the nearest one-eighth of 1%.

LOWER PAYMENTS

- Consolidation offers a variety of repayment plans, most of which extend the terms of the loan from 10 years to 15, 20 or even 30 years. A longer term loan can lower the monthly payment by as much as 50%, making it more affordable while you get going in the working world. It’s also possible to get reduced interest rates and that too will reduce monthly payments.