Federal Ed Loan Consolidation
Federal ed loan consolidation is a free, government-sponsored program that allows you to combine your federal ed loans into one, lower-interest loan. No credit check is required for this type of ed loan consolidation. You will not incur any pre-payment penalties. By taking advantage of federal ed loan consolidation, you will be getting the lowest possible monthly payments and low, fixed interest rates. Here are some fast facts about federal ed loan consolidation:
- Loans eligible: Stafford, Parent PLUS, Perkins, Grad PLUS, Supplemental Loans for Students, Loans for Disadvantaged Students, Health Professions Student Loans, Nursing Student Loans, Health Education Assistance Loans, and consolidation loans (if other eligible loans are included)
- When you can consolidate: you can consolidate during your grace period or in periods of forbearance, repayment, or deferment. Parents can consolidate PLUS loans any time after they have been disbursed, even if the child is still in school.
- Repayment options:
- Standard - you will make monthly payments on principal and interest for the life of the loan
- Income-sensitive- for those who are eligible, your ed loan consolidation payments can be based on a percentage of your income (as low as 4%)
- Graduated - at the beginning of the repayment period, payments are low and gradually increase at certain times over the loan's term
- Extended - eligible borrowers may choose to extend their repayment term to up to 30 years with federal ed loan consolidation
Private Ed Loan Consolidation
For those of you with private loans, ed loan consolidation can also help ease your financial burden. The introductory rates on private consolidation loans are at historic lows, so now is a great time to consider private ed loan consolidation. Private ed loan consolidation rates can range as low as 6.32% for the first year. Both parents and students are eligible for private ed loan consolidation. Here are some of the reasons to consider private ed loan consolidation:
- Opt to make interest-only payments for the first 2 years of your repayment
- No prepayment penalties
- Extend your loans to up to 30-year terms
- Enjoy interest rate savings for signing up for automatic withdrawal from your checking or savings account
- Get introductory interest rates as low as 6.32%
- Reduce your monthly payments by almost half in the first year
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