If you are timely in making your federal and/or private student loan payments to your lender, having this type of debt can actually begin to strengthen your credit rating after about six months of steady payment.
Better yet, if your student loans are consolidated, reducing the number of active accounts on your credit report, it can heighten your score as well.
You might also have access to alternative repayment plans you would not have had before, and you’ll be able to switch your variable interest rate loans to a fixed interest rate.
Loan consolidation can greatly simplify loan repayment by centralizing your loans to one bill and can lower monthly payments by giving you up to 30 years to repay your loans.
There are two primary types of educational loans — private and federal.
While both may be eligible for consolidation, it is important to think of these two types independent of each other when considering consolidation.
The creation of this one loan, which may reduce monthly payments and extend the lending time, creates the chance for easier repayment of all federal loans.
In essence, when you consolidate your student loans, you are really refinancing them.With federal programs expending approximately 4 million in 2010-11, student loan consolidation has been a well-received solution to student debt management.Prior to July 1, 2006, students could consolidate their public loans while they were enrolled in school full time. Students can either consolidate during the six-month grace period after graduation or wait until after the loan enters the repayment phase.When you decide to consolidate, our partners will make the process easy for you. The federal student loan consolidation application process is detailed. Your paperwork will be prepared and submitted for you, with your approval.This is the second chance you've been waiting for: a lower payment and a more forgiving timeline. Be sure to compare your current monthly payments to what monthly payments would be if you consolidated your loans.