"Lastly, a consolidation loan taken out for educational purposes is often classified as good debt and if all payments are made on time to the lenders then this will give your credit rating a real boost and helps to pave your way for financial freedom in the future."

 

Student Loan Consolidation 

"At the present time there are two types of options when applying for a consolidation loan."

Student Loan Consolidation

Consolidation Loan Eligibility Rules


All FFEL and Direct Stafford Loan borrowers are eligible to consolidate after they graduate, leave school, or drop below half-time enrollment.

PLUS loans are eligible for consolidation once they are fully disbursed.

Borrowers who are delinquent or in default must meet certain requirements before they may consolidate their loans. Contact your loan holder for more information.

To be eligible for a William D. Ford Direct Consolidation Loan, you must have at least one of the following:

1. A Direct Stafford subsidized or unsubsidized loan that will be included in the Consolidation loan; or
2. Have at least one Federal Family Education Loan (FFEL) program Stafford subsidized or unsubsidized loan.

If your current loan holder does not offer a Consolidation Loan or a Consolidation Loan with Income Sensitive Repayment terms acceptable to you, and you are eligible for Income Contingent Repayment, you may apply for a Direct Consolidation loan. In addition, if you have more than one FFEL loan, you may apply for a Consolidation Loan with any of your FFEL loan holders or through the Direct Consolidation Loan Program.

Borrowers who obtain a Direct Consolidation Loan or a FFEL Consolidation Loan while they are in the grace period on any loan that will be included in the new Consolidation Loan, or who will include one or more Perkins Loans in the new Consolidation Loan, are advised that the grace period on those loans will be immediately terminated (e.g., you will lose the benefit of having a grace period before repayment would begin).

Note that borrowers with one or more Direct Loans, including Consolidation Loans, can also consolidate under the FFEL Consolidation Loan Program if they choose.

Accordingly you can exclude the loans which have lower interest rates than those offered by the school loan consolidation program.

Låna Loans & Other Subjects 

The government student loan consolidation service has said that if you check with your current lenders then they may be able to extend your loan repayment period which ultimately lowers the monthly payments.

Other Loan Consolidation Article Excerpts:

Should I Apply For A Home Debt Consolidation Loan

"Is it to reduce huge interest rates you are presently paying? This facility will assure that the interest rates are checked within reasonable limits and the payments are consolidated to only one payment per month. There you will find financial experts who will help you work out the best possible solution for your situation, often free of cost. "

Utilizing The Direct Student Loan Consolidation Service

"So, how can you get out, clean, from your student loan (or your many student loans)? There are many benefits that accrue from the consolidation of the student loan. The best part is that you can prepay the loan without incurring any penalty Beware that even the best things will have a downside. Before you decide on what type of education consolidation loan you avail, be sure you understand all the pros and cons of the facility offered to you. "