Federal Government Student Loan Consolidation

Since you are reading this, you must be in some consideration of going for federal government student loan consolidation. When you have multiple loans and are going to pay multiple interest rates for the loans, it is only logic that you consolidate the loans into one to make your life easier. It is stressful to carry the heavy loan on your shoulder and seeing a mass your income going to repay the loan is surely not something entertaining.

As the name implies, the loan consolidation program is offered by the federal government. You can then consolidate your student loans such as Stafford or PLUS loan with Federal Direct Student Loan Program (FDLP) or Federal Family Education Loan Program (FFELP). When you have consolidated your loans with the federal government, you can reduce your monthly repayment and probably earn some peace of mind.

Besides that you will be servicing your consolidated loan with fixed interest rate (which will be calculated base on the current interest rate with the different loans being combined together), earning payment incentive (base on the punctuality of your payment over a period of years).

And unlike some student loan consolidation agencies, you can apply for federal student loan consolidation disregard of your loan balance. This is very helpful when you are stuck in an emergency where you are suddenly financially unfit to service the loans.

By the way, since the federal student loan consolidation program is protected by the government, you don't need to reveal your credit history. So, even your credit history doesn't look as good as some other applicants, you can still apply for the program.

The federal student loan consolidation program is also flexible enough that you can choose which loans you want to include in the program. If you are confident that excluding one of the loans can save you some money, you can just go ahead. The program will not penalize you for that.

Looking at the benefits of the federal student loan consolidation, you might be wondering whether you are eligible for the loan. You are eligible, if you are a student who is servicing the loans in deferment, grace and repayment period and never consolidated your loans before.

Now, even though you have consolidated your student loan with the federal government, it doesn't mean that you can leave the loan unattended. And if the federal government does lower the interest rate during this economy turmoil, you will want to know how much you are actually paying for the loan. In other words, you got to be financial savvy to properly manage your loan.

You can manage your finance,

Michael W.