Have you finished your graduation? If yes, the time has arisen for you to understand the responsibilities after the fun days and celebrations of college. Its time for you to search a good job and start earning in order to support your parents in every step whether in case of paying off rents or any repaying any other utility bills. Another obligatory responsibility for you is to pay off the federal student loans.These loans have once helped you efficiently in paying off your college fees. Now its time for you to repay it as the grace periods will end soon. You may be facing difficulties to meet the loan payments due to your financial incapability but continuously missing payments may result in accumulation of defaulted student loan. This defaulted student loan can create bad impact on your credit ranking.
Therefore you need to take the necessary measures as soon as you find difficulties in paying off the liabilities. Whether you have one or more than one student loan repayments the federal student loan consolidation can make your repayments simple, easy and also can lower the reimbursements obligations.
The federal student loan consolidation unites all the federal loans into one single loan of the graduate who has finished his studies into a single loan. Again, he/she can renegotiate the current rate of interest and the repayment time with this procedure of student loan consolidation. Several kinds of federal student loan consolidation are obtainable for students possessing defaulted student loan.
The individuals can select the one appropriate for them depending on their budget and requirements. One thing that is necessary to remember in this regard is that any individual who has opt for personal loan consolidation facility will not be eligible any more for plans of federal student loan consolidations.
Individuals are free to pay off more than the actual amount of repayment after the federal student loan consolidation process every month in order to repay the entire loan as soon as possible. They need not to pay any extra charges or penalties for their payments. Rather the federal government will certainly welcome their attempt. It is also recommended so that individuals need to pay off less money as interest repayments.
The loan will be considered as defaulted student loan if individuals have not made any repayments within 180 days. In this case also individuals can opt for the process of federal student loans consolidation. Another fact to remember in this regard is that individuals can not consolidate federal and private loans together into one single loan.
The private lenders give loans in order to earn profit. Therefore the terms and conditions of these private loans are favorable to the lenders. But the student loans provided by the government include terms that will be favorable for students. Moreover federal loans have fixed interest rate whereas private loans may or may not have fixed interest rate.
As a result naturally combining both these loans are not possible. Students need to have minimum $10k as outstanding loan amount to adopt this process of consolidation.
Source : www.freearticledirectory.co.uk/index.php?page=article&article_id=27450
