Consolidation Benefits
The Federal Student Loan Consolidation Program is FREE and benefits students by allowing them to consolidate one or more eligible federal
student loans into a new, single loan. While paying a fixed
interest rate and combining all debt into a single monthly
payment, students can extend the repayment period up to 30
years. Currently, federal student loan borrowers are eligible
for student loan consolidation and in some cases, re-consolidation.
ONE MONTHLY PAYMENT — Students with
several student loans can now combine them into one, lower
monthly payment.
FIXED INTEREST RATE — These rates can
be locked in for the life of the student loan, potentially
saving loan borrowers thousands of dollars.
NO CREDIT CHECK — Student loan consolidation
is every eligible borrower's right. Credit rating is never
considered during the processing of any loan borrower’s
consolidation application.
FLEXIBILITY — We will work with student
loan borrowers to develop the plan that best fits their needs
today and into the future. This may be the lowest monthly
payment, or a shorter repayment term on the loan.
NO FEES — The Federal Student Loan
Consolidation Program is completely free to federal student
loan borrowers. There are no application fees, service charges
or hidden costs of any kind.
NO PRE-PAYMENT PENALTY — Student loan
borrowers may prepay all or any portion of their student loan
at any time without penalty. This is recommended, as it will
reduce the amount of interest paid over the life of the loan.
REPAYMENT TERMS — The federal government
allows student loan borrowers to adjust the term of a consolidated
student loan up to 30 years depending on balances.
IMPROVED CREDIT RATING — Student loan
consolidation improves debt payment -to-income ratio by reducing
the monthly payment. Once students consolidate, credit reports
will show only one student loan remaining at a much lower
monthly payment, rather than multiple loans with multiple
payments.
TAX DEDUCTION OPTIONS — A portion
of interest on your student loan may be tax deductible. Consult
your tax advisor or click
here to visit the IRS website. |
