Student debt consolidation with the help of federal loan consolidation is a convenient way of getting rid of troublesome multiple education loans.
It really helps in streamlining and simplifying the repayment process.
Education has become so expensive these days that there is no alternative for a vast majority of people but to obtain education loans.
Obtaining education loans is not too difficult but repaying them certainly is.
Students step out of colleges to begin a new life with dreams in their eyes and a good deal of zeal in their hearts.
But they suddenly realize that they have a mountain of debt to pay off in installments that would eat away a significant part of their monthly income.
This jolt, obviously, shakes off much of their fervor.
They are obliged to live a large part of their lives burdened with debt.
And this, one way or the other, does affect their prospects and performance.
However, a good student debt consolidation program can change all this.
Student Debt Consolidation - An Appreciation Student debt consolidation is largely similar to other debt consolidation programs.
We are all aware that students need to take multiple loans for different purposes viz.
payment of college fees, payment of boarding charges, payment of food charges, and so on.
On an average, every student that graduates from a college is liable to pay three different kinds of debts or loans.
It's a well known fact that paying multiple monthly installments for different loans can easily take toll of anyone in these times of inflation.
Especially, it can prove extremely baffling for a new graduate just beginning his professional life.
Moreover, the three different installments cumulatively eat into a big part of fresh earners' incomes leaving them with very little to manage other expenditures.
This predicament that most of the graduates face necessitates student debt consolidation or student loans consolidation.
When a student approaches a finance company / bank or the U.
S.
Department of Education for debt consolidation, the concerned organization pays off the different debts of that student in one go.
Thereafter, they fix a period of repayment and rate of interest for recovering the loan from the concerned student.
The rate of interest is usually lower than the average interest charged on the earlier three loans.
Plus, the repayment period is also fixed as per the wish and convenience of the student.
Thus, a student can enjoy multiple benefits if they opt for student debt consolidation.
How To Apply & How Does It Work? Applying for a student debt consolidation loan is simple.
You just need to submit an application to any bank or credit union that is linked with the Federal Family Education Loan Program or the U.
S.
Department of Education.
The whole process is completed by most of the consolidating companies between 30 to 45 days.
Since federal government guarantees these loans, they do not require any credit checks, fees, or proof of employment/income.
Having received your application the consolidating company contacts your different lenders offering to pay off your loan.
After the company pays off your different loans, you become liable to pay the sum total of the three loans to the consolidating company.