We all know by this time that student loan
consolidation is the easiest way of simplifying repayment of all the debts as
it combines everything into one consolidated loan and the student is left with
just one loan to repay with lower and fixed rate of interest. But there still
are many intricacies which one does not know. Does the student know when can he
or she consolidate the loans, which student loan consolidation companies are
the best at it, the rate of interest, the application process? Well, here we will
discuss everything related to student loan consolidations and especially how to
procure them.
What is the right time to consolidate loans? The most
asked query by students is when can he or she apply for student loan
consolidation? The simple answer to it is- after the student graduates, or is
leaving school or even when the student drops below the half time enrollment.
All the requirements to consolidate a loan. There are certain tricks and tips to follow to make oneself eligible for consolidation of loans, they are-
- There needs to be at least one FFEL program loan or direct loan in the mode of repayment or in the grace period.
- If there is an already defaulted loan then the student must make secure and satisfying repayments to the current consolidate loan company or he/she must repay the loan under income contingent repayment plans.
- There are is absolutely no application fee and the student can even prepay the loan before its maturity period without any penalties.
The rate of interest on consolidated loans. The direct consolidation loans have fixed rate of interest for the entire payment period. The final rate of interest to be paid remains on the average of all the loans to be consolidated and then it is rounded off to the value of one percent. How ever any rate of interest on consolidated loans even if undertaken by student loan consolidation companies cannot exceed the upper limit of eight point two five percent.
How can a student apply for direct consolidation
of loan? There are often numerous ways to apply for a direct consolidation of
loans-
- A student can apply directly online on the website of direct consolidation of loans.
- A student can apply via telephone. One need to call on- one eight zero zero five five seven seven three nine two.
- A student can download the promissory note from the direct consolidation loans website.
Student loan consolidation companies like- Wells
Fargo, Chase, Direct consolidation loans can be of tremendous support to
students who are seeking their way out of the financial web of student loans.
If one sticks to the above discussed methods then that student will hardly face
any hurdles while procuring the consolidation of all of his or her student
loans. Moreover if one does not feel confident enough then one can always take
help from any of the student loan consolidation companies. 