Not long ago, you were applying for your student loans, filling out college applications, and preparing for classes. Few years down the lane, you’ve graduated with a college degree and a hefty line of student debts. For most part, handling and managing multiple federal student loan monthly payments with the varying interest rates and lenders can be overwhelming.

For this reason, the U.S. Department of Education decided to allow students the opportunity to combine multiple federal student loans into one ‘mega loan’. This is referred to as student loan debt consolidation.

Should You Consolidate Your Loan?

The decision to consolidate is one that should be analyzed thoroughly. It allows you to centralize all your smaller loans into a single bill – as a result, you end up paying off a single loan, instead of stressing over the hassles of multiple loans.

Also, with student loan debt consolidation, your per-month payment reduces because you have up to 30 years to pay off the outstanding amount. Moreover, you have access to some benefits and student loan repayment options that you may not have had with the other repayment plan; for instance, switching from a variable interest rate to a fixed one so you pay a single amount throughout the life of your debt period.

However, while there’s no denying that this method allows you some benefits, it also, in a way, restricts you. For instance, you may lose certain benefits that you were initially entitled to in the original loans, such as principal rebates, interest rates discounts, etc. Once you consolidate, you lose those benefits. Also, on the extension of your loan repayment period, you may be paying lower monthly payments, but you end up paying more in interest, as opposed a short term period. Nevertheless, the pros of consolidation have in most instances exceeded the cons.

When Can You Consolidate Your Loan?

You may consolidate you loan as soon as you graduate, leave school, or drop below half-time enrollment.

Are There Requirements For Loan Consolidation?

Here are few things that you need to keep in mind when consolidating loans:

1.       You must have at least one Direct Loan or FFEL Program loan that is already in repayment period or in grace.

2.       It is also possible for you to consolidate a loan that you’ve defaulted on provided that you make satisfactory arrangements with your current lender before you consolidate.

3.       Generally, you may not be able to re consolidate an existing consolidated loan unless you add a Direct Loan or FFEL Program loan in.

What Are the Repayment Plans?

Even with consolidated loans, you have the flexibility to choose your repayment option and plan as per your income, needs and budget.

Qualifying for a loan consolidation is less complicated than it seems. Although, it is still recommended that you get in touch with a team of student loan experts with an understanding of the nature of loans and the resources available to initiate the documentation process.

Student Loan Project provides individuals with the chance to gain better guidance and assistance with their federal student loans. The team helps by providing lower monthly payment options,  document processing services that helps consumers find appropriate Department of Education (DOE) programs,  and assist them with the compilation, and submissions to the DOE all of the required documentation.

For more information, visit their website, http://www.studentloanproject.us/ or contact them at, 1-855-202-7390.

Address:

16855 W Bernardo Dr #350,

San Diego, CA 92127