There are a multitude of school loan programs available for the consolidation of student loans. Choosing the option best suited for you and your financial situation isn't as complicated as all the hype may lead you to believe. With a little effort and a point in the right direction you'll be choosing a low cost program for the consolidation of your student loans in no time.
The first place to start is becoming familiar with the type of loans you currently have. Who the lender is, what the rates are for each loan, and what the grace periods are. Then you need to determine if they are Private Student Loans or Federal Student Loans. And, you need to know which ones are eligible for consolidation and which ones aren't.
Once you've determined which school loans qualify, the next step is deciding what type of consolidation student loan programs will be best for you. Even if your current student loans have varying terms and re-payment schedules with more than one lending company, the chances of being eligible for the consolidation of student loans is very high. This is due in part to the fact that even with poor credit, the worst that does is cause one to pay a bit more for the interest rate, but usually doesn't effect ones qualifying for consolidation of student loans. This will take a bit of research on your part as the options can be quite diverse. Below is just a brief list of some of the types of student loans programs currently available for consolidation. Doing your homework in this department will help you choose the lowest cost consolidation & student loan solution for your needs. Some you will already be familiar with from your current school loans.
Government backed student loan programs available for consolidation:
Federal Student Loans
Direct Stafford & Ford Loans (subsidized and unsubsidized)
FFEL Stafford Loans (subsidized and unsubsidized)
Direct and Federal PLUS Loans
Guaranteed Student Loans (GSL)
Federal Insured Student Loans (FISL)
Federal Perkins Loans
Federal Supplemental Loans For Students (SLS)
Loans For Disadvantaged Students (LDS)
Nursing Student Loans
There are several others, but these are the most common to help you get acquainted with the terms. By far, in my humble opinion of course, Government backed Federal loan programs offer the highest level of benefits for the lowest cost. The only time this isn't the case is when your present loans are close to being paid off. In that case, consolidating student loans now would only increase the time of repayment as well as the amount you'd end up paying for the loans in the end. So be sure you understand the loans you have and if need be, call your lenders and ask them questions until you do understand. It's the only way to make good decisions before you sign on the dotted line.
Another set of terms you will no doubt want to understand if you don't already, are the option terms:
Subsidized and Unsubsidized
Federal loan programs offer these options and you need to be aware of what they can do for you if you qualify. Unsubsidized loans however, are offered to everyone and no special requirements are necessary.
Subsidized loans on the other hand were created by the Government for those who need extra financial aid or assistance but you must qualify to be granted this type of loan. This is undoubtedly the lowest cost alternative and one to look into further. Ask the lender you chose to explain the benefits if you need more information. Always ask questions if you don't understand, once you sign the new consolidation student loan, there is no backing out. When it's done, it's done so you need to be sure you comprehend everything you are being asked to sign and what exactly the new terms are before proceeding. |
