How to Consolidate Student Loans – Five Tips
There are some things to consider when you’re considering how to pay off student loans and consolidate student loans at the same time. It might not make a lot of sense if you don’t already know all the facts before you decide to apply for any type of consolidation.
First, there is no federal student loan forgiveness available. This includes any student loan debt. Consolidating federal student loans is simply a tool that helps with a wider approach.
Second, you must be a United States citizen or have an eligible Social Security number to qualify for federal loan forgiveness. If you want to pay off all federal student loans, but you don’t qualify for federal loan forgiveness, there are private organizations that offer this service. These services may include student credit counseling and consolidation programs.
Third, when you consolidate loans, you will get them back in a new lower interest rate, which may be lower than what you had at first. This is because you will only be paying one monthly payment. You must know, however, that if you default on your new loan payment, your creditor will go after your co-signer for repayment of the loan.
Fourth, if you have multiple types of student loans and don’t qualify for any type of student loan forgiveness, there is a different option for you. Federal loan debt relief programs, such as the Federal Family Education Loan Program (FFELP) and the Federal Perkins Loan Program (PPIP), may allow you to consolidate your federal student loans. There may be certain conditions that apply; however, these programs are worth investigating further to see if they are right for you.
Fifth, you may not qualify to consolidate only one payment plan or program. There are several types of payment plans available to students. They include: Pay As You Earn and Compensated, Forbearance Plans, Income-Based and Pay As You Go. The payment plan that you choose depends on whether you qualify for federal student loan forgiveness, you have multiple student loans, and the payment schedule you choose.
Sixth, you must know what qualifies you for federal student loan forgiveness before you start looking into how to pay off student loans. The best place to look at for this information is the Department of Education’s website. If you don’t know, just call the department. They can provide all the information you need.
Seventh, when you begin your search for the type of loan consolidation that is right for you, be sure to do the research before you begin searching. It is important that you understand how to repay your debts, what is eligible for federal student loan forgiveness and how much you are going to have to pay to the government every month.
The Department of Education’s website provides a way to learn about the many options available for how to pay off student loans. In addition, the website also provides detailed descriptions of each type of repayment plan and the fees associated with each plan. These fees are usually included in the initial education loan payment.
If you are a parent who wants to be able to help your student pay his or her tuition bills but does not want to make monthly payments, you may want to look into a repayment plan. You may find that you can save money by consolidating your student loans to make it easier for your student to make his or her payments.
Finally, you may want to explore the possibility of federal loan forgiveness for people who are struggling financially. You may qualify to apply for a Pell Grant, subsidized or unsubsidized, and subsidized or unsubsidized. Stafford Loans is eligible for either.
These two repayment plans may also be available through loans from a private lender, and you may also be eligible to consolidate other types of loans. In addition, a grant may be available to you through the Department of Education, if you have been approved for this type of funding. This is another great way to reduce the amount of money you pay on your student loans each month.