Federal Consolidation Student Loan
A good education is an important part
of your financial future. To get that education, many students turn to federal
loans. After graduation, however, they may find it difficult to repay these
loans and keep up with day to day living expenses as they get started on their
new careers. A federal consolidation student loan may be the answer.
federal consolidation student loan requires a certain amount of research.
You will want to start by finding out whether or not it is worth your time to
apply. If you do not meet the eligibility requirements, applying is just
a waste of time.
To qualify to consolidate federal student loans you can
no longer be enrolled in school (which is generally defined as being enrolled
in school less than half time), you have to be in the “grace period”
of the loan or actively repaying it, and meet the minimum loan requirement of
the consolidation company, which typically is $10,000.
have different rules than private loans, and offer some advantages. The
interest on federal loans is tax deductible, the loan can sometimes be forgiven,
and payments can be deferred if you go back to school. If you have both
federal and private loans, consider consolidating them separately so that you
do not lose the benefits of the federal loan. Some companies can do this,
and then combine your federal consolidation student loan into one monthly payment
to make it easier on you. By only having one payment, you can manage your
budget and finances easier and get everything paid off in a reasonable amount
Loan rates are often around 3-4% so you can save money with consolidation.
And since about half of college students take out student loans, you will be in
good company. Like all other forms of debt these loans can influence your
credit and future purchasing abilities, so it is important to get the debt paid
off as soon as you can. Student loan debt that exceeds 8% of your income
is seen negatively on your credit report, and can affect your chance of qualifying
for future loan amounts. In order to protect your credit score, you have
to start taking steps now and making wise credit decisions.
fees, and the repayment schedule should be clear to you so that you can compare
loans accurately when your ready for a federal consolidation student loan.
You should also take the time to understand all of the terms of the loan before
signing on the dotted line. If you take the time to research online, you
may find that some places will have online applications, no application fees,
or waive credit checks.
These loans can stay on your credit report long
after your graduate, so making good decisions now and understanding how student
consolidation loans work and affect your credit can make the difference for the
future. Knowing what you need to do and how to do it to keep your credit
report in good health will keep it from becoming a problem for you later on.