Federal Student Loan Consolidation

Having a big amount of debt can make up your sleepless nights, so to speak. Therefore, you should look for a better option in case that you would want to end up your misery. Over time, federal student loan consolidation has been the very resort of parents, graduate students, and undergraduate students as a means of simplifying their outstanding debt.

Going for its consolidation opens the doors for better money management and add to it the fact that you would be more in control of your monthly dues.

The truth about federal student loan consolidation is that all the current student loans can therefore be fused into one account so that the borrower would only be prompted to pay for a manageable due. The catch is this—once you have qualified for a federal student loan; you therefore become qualified to avail of the federal student loan consolidation scheme.

Among the variety of these loans are the Perkins loans, Stafford loans, Health Professional loans, direct loans, PLUS loans, Guaranteed Student Loan, and NSL. It doesn’t matter as to whether it is the student or the parent who benefits in the loan but the real deal is that they can turn to the federal loan consolidation system. However, as the law provides these days, a person’s loans should be separately consolidated.

You should take note though that the consolidation of the loans can only become a good option when the paying off period has signaled its start or within the span of time that they need to be settled. The consolidation can never be possible while the student is still studying.

But the case is different when it comes to the PLUS loans availed by the parents as they can apply for the consolidation at any moment. Another thing to keep in mind though is that the lender to consolidate the loan must not be the same lender who granted you of the existing loans.

Now what can you get out of consolidating these loans? More than ever, there are a number of advantages that you can reap out of the federal student loan consolidation. Here they are.

You can enjoy fixed interest charges, only a onetime payment in a month; you get reduced monthly dues, renew the deferments, and even receive payment incentives.
This scheme generally requires a minimum loan balance and you can choose the payment plan that would suit you best.

Another good point with the federal student loan consolidation is that the undergraduate loans can be arranged to be merged while your graduate studies is ongoing.

The bottom line in here is that the rest of the types of loans such as personal loans, credit union loans, bank loans, and many others can’t be designated to qualify for federal student loan consolidation.

They have to be purely federal student loans. There are several lenders that allow the consolidation of such loans and the best time to start scouting for a potential one is now. Check out the Internet for more options too.


  1. Ah, damn. So many students now take loans and they don’t know what to do because of crisis, they can’t return the money. It’s awful!

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