If you went to college and used federal student loans to finance your education, you may want to consider student loan consolidation to reduce your interest
costs and lower your monthly student loan payments. Student loan consolidation does not require a credit check and the consolidation loan is not subject to any prepayment penalties.
How much are the interest rates for student loan consolidation?
The interest rate for a student loan consolidation is a weighted average of all your student loans rounded up to the nearest eighth of a percentage point.
Currently (as of July 2006), guidelines stipulate that this interest rate will be a fixed for the entire life of the loan.
Is student loan consolidation a viable option if I am still in school?
You can consolidate student loans while you are still in school. However, if you do so you will have to begin repaying the consolidated student loan
as soon as you graduate -- you will forfeit the 6-month grace period allowed the individual student loans.
What types of loans are eligible for student loan consolidation?
The following loans are eligible: PLUS loans, Perkins Loans, Nursing Loans, Supplemental loans, Stafford/Direct loans (subsidized and unsubsidized).
Are there any restrictions for student loan consolidation?
In order to be eligible for federal student loan consolidation, you cannot be in default on any of your
student loans and your student loans must meet minimum dollar amount guidelines ($10,000 as of July 2006).
If your student loans do not total $10,000, you may still qualify for a private student loan consolidation.
With a private student loan consolidation, you will have to go through a credit check (since the loan will not be federally insured).
The interest rate on a private student loan consolidation is likely to have an adjustable rate.
