As a student you took many loans for meeting the ever increasing expenditure on collage education. But now you think the loans should be made easier so that the debt burden could be reduced. Student loan consolidation is exactly meant for this purpose of managing the burden of Federal Student loan debt.
On taking student loan consolidation a student is able to all of his or her outstanding education loans into a single loan. So even if you took loans from many sources or your loans are of different types, student loan consolidation merges all your outstanding loans into it. Main advantages and motive behind student loan consolidation are that the student wants to merge all debts into a lower interest rate new loan so that he saves huge amount of money that was to go waste for paying higher interest on debts.
Another motive is getting larger repayment duration. Student loan consolidation can be availed for a repayment duration ranging from 12 years to 30 years depending on the total amount of student loans. So, for instance, a student can repay his $ 60000 outstanding balance in 30 years through student loan consolidation. There are in fact many repayment plans in place for the convenience of the student, like graduate repayment plan, income sensitive repayment plan, extended repayment etc
The rate of interest on student loan consolidation is fixed and is calculated on the basis of a statuary formula created by the Federal Government. So the weighted average of your current interest rates on Federal Student loans are taken into account for finalizing a lower rate of interest on student loan consolidation.
A student can source student loan consolidation online from various lenders. There are student loan consolidation programs offered online by number of lenders offer the loans as per governmental rules. Search for them and apply online. And do not worry about your bad credit as for them these loans are approved without any hurdles.
Student loan consolidation is meant for the purpose of reducing the burden of all education loans. The rate of interest is kept lower on the student loan consolidation and larger repayment duration can be availed for reducing the monthly payment towards the loan installments. Read the article for the details.