Federal Student Loans - Student Loan Consolidation

Student Loan Consolidation is about combining all the loans you have and allowing one lender to repay all the loans. Student loan consolidation is something like a refinance mortgage loan that allows people who are in debt to make their payments in a much better and more convenient way.

When your loan is combined it enables you to make regular payments at lower interest rates and makes your debt more manageable.

There are different types of student loans available the easiest method to categorize them is Federal student loans and private student education loans.

Federal student loans are initially run through the united states Department of Education's Federal Student Aid programs, and therefore are easy to avail. The Federal government usually allots approximately $60 billion for education loan consolidation purposes and these help students pay away loans, work and study and helps supports numerous grants.

One of the most popular forms of federal grant programs may be the Stafford loan for students but others include army and ROTC plans.

The second category of loans may be the private student loans. These are administered by financing companies like Sallie Mae. These companies provide short term loans and then charge high interest rates. While their rates are greater than federal grants they have more flexibility of obligations for students.

When attempting to consolidate your loans you need to separate the private and the federal loans. Federal loan consolidation has several advantages a number of which are:
  • Low interest rate [however the rates keep changing]
  • Long-term loan repayment plans
  • Low monthly payments
  • One lender
The federal student loan consolidation services offers students a reliable and convenient way to repay their debts without overburdening themselves with debt as they struggle to make their way on the planet.