If the repaying would be as easy as taking the student loans, there would be no need for the consolidated student loans. Around 70 % of the students take the student loans with an average sum of $ 22.700, but this sum does not include those, who interrupted the studying.
1. The Federal And Private Consolidated Student Loans.
It is a slight problem, if a student has taken both the private and federal loans, because if he has a need for more disposable money, he cannot consolidate these two together, but private must be consolidated as their own group and so must the federal ones. This comes from the fact, that the federal loans have special terms, which the private loans do not have.
2. Private Loans Have Flexible Rates, But Federal Loans Have Fixed.
If a student has taken private and federal student loans and want to change into consolidated student loans, it is not possible. On the private side the interest rates are flexible, i.e. they depend on the credit score of the borrower, but on the federal side they are fixed.
3. Special Terms Of The Federal Loans.
Here are the most important ones: you can defer the consolidated loans payments if you go back to studying. You can avoid the payments if you meet a serious economic situations. You can deduct the paid interests in the taxation. And if you will pass away, the federal loans are forgiven.
4. How To Qualify For The Federal Loans.
First, the sum of your loans must be at least $ 10.000. You must be graduated and in the grace period or repayment period. You cannot be in a default status with any of your loans. It is needed, that you are a permanent U.S citizen and that you have not consolidated the same loans before.
5. The Flexible Federal Loan Repayment Alternatives.
You can choose from four alternatives. The standard payment means the same sum payments every month. The graduated payments means gradually increasing payments month after month. If you will choose the income sensitive payments, they will follow your income development. The extended payment means, that you have to pay at least a certain minimum amount every month or in some certain time.
These were the facts, which were able to handle in a short article. It is very important to get the expert guidance concerning all details and your own personal customized information. The loan consolidation is so serious and complicated thing, that you must be sure to which you commit yourself.
Juhani Tontti, B.Sc., Marketing. Your benefits from the consolidated student loans are many, but before you decide on the student loan consolidation talk with an expert. Visit: consolidate student loans