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Study loans and student grants are 2 different entities and for each class, there are 2 different schemes. One of them is the FAFSA ( Free Application for Fed Student Aid ) which supplies a grant scheme called the Federal Pell Grant and the second is provided by a campus itself which is under the scheme called the Federal Supplement Academic Oppurtunity Grant.

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University payment plans are a brilliant option for reducing college loan borrowing, but only if you can afford your payments. Tread carefully. Get full details about your university’s repayment schedule options, figure out price of attendance, have at least a semester in savings before you begin, and borrow Fed. college loans if your cash is tight.

Non-public education loan consolidation is one of the best ways of reducing your student loan burden. Students with multiple education loans can use this technique effectively to reduce finance burden. There are lots of fiscal establishments who offer personal academic loan consolidation nowadays.

INTERLUDE– Are you finding this article related to student loan credit so far useful? I am hoping so because that is the purpose of this text – to get you better educated on student loan credit and other related student consolidation loans, consolidating federal student loans, federal student loan consolidation loc us, student financial aid and information.

Loan consolidation service replaces one or two different loans with one single loan on completely different, and can be agreeable, terms. It will no doubt reduce monthly payments briefly but can have a worse net effect than the combined effect of all prior loans. The decision to go for such service should be made after debating one’s budget and spending activities.

When you think about using loans to pay for your university education, think how you will pay back those loans. Your student loan payments shouldn’t be more each year than 8 % of your yearly salary. If your average college loan payment is more than this, your available cash for everyday routine expenses will be limited and you’ll have a tougher time getting other categories of loans, like one for an automobile or a mortgage.

Many of us hunting for student loan credit also searched online for consolidation loan rate student, student loans for college, and even student loans in the united kingdom search results,federal student loan consolidation.

A student deferment form need to be submitted for each semester enrolled to ask deferment of your loan payments. The form is normally submitted at the start of each semester. The student deferment form must be certified by your college registrar.

It’s not an easy time to be graduating from college with student loans. With the unemployment rate soaring toward 10 percent and the average starting salary for college graduates down 2.2 percent this year, student loan borrowers — whose average debt from student loans tops ,000 — are now having an even tougher time affording their student loan payments.

The good news? Starting July 1, 2009, graduates with federal college loans may be able to qualify for a new government program that can reduce the monthly payments on their student loans based on their income.

Income-Based Repayment for Federal Student Loans

The income-based repayment program, created by Congress in 2007 as part of the College Cost Reduction and Access Act, will cap a borrower’s monthly student loan payments at a percentage of her or his income, when the borrower’s income is at least 50 percent higher than the current federal poverty line for the borrower’s family size.

These income-based student loan payments will be calculated as 15 percent of the amount by which a borrower’s adjusted gross income exceeds 150 percent of the poverty line.

(For individuals, the 2009 poverty line is ,830 in all states except Alaska and Hawaii. The complete federal poverty guidelines for 2009are available on the website of the U.S. Department of Health and Human Services.)

For example: 150 percent of the current individual poverty line of ,830 is ,245. If a borrower’s annual adjusted gross income is ,000, the monthly payments on her or his eligible student loans would be capped at 9.44 — 15 percent of the difference between ,000 and ,245, divided by 12 months. If a borrower’s annual adjusted gross income is ,000, the monthly payments on any eligible student loans would be capped at 6.94 (,000 – ,245, multiplied by 15 percent, divided by 12).

Income-based monthly payments will be adjusted annually, based on a borrower’s federal tax return from the previous year. As a borrower’s income rises, the income-based repayment cap will also go up. If the income-based repayment cap reaches a level higher than what a borrower’s monthly payment would be under a standard 10-year student loan repayment plan, the borrower will no longer qualify for income-based repayment for her or his student loans.

Borrowers whose adjusted gross income falls below 150 percent of the poverty threshold won’t be required to make any payments on those student loans that qualify for income-based repayment.

Even if no payments are due, however, interest will continue to accrue on those college loans. Unpaid interest will also accrue if a borrower’s income-based monthly payments aren’t sufficient to cover the full monthly interest on the qualifying college loans. Any accrued unpaid interest will be added to the student loan principal and capitalized when the borrower no longer qualifies for income-based repayment.

Subsidized Interest and Student Loan Forgiveness

For those borrowers who hold subsidized student loans or a federal consolidation loan that included subsidized Stafford loans or Perkins loans, the government will cover any unpaid interest on those subsidized loans (or on that portion of a student loan consolidation that’s comprised of subsidized loans) for the first three years that a borrower is in income-based repayment.

The longest that a borrower can remain on the income-based repayment plan is 25 years. After 25 years of income-based payments, the government will forgive any remaining principal and unpaid interest — although borrowers should note that under current tax law, this forgiven student loan debt would be taxable.

Borrowers who are employed full-time in qualifying jobs in the public service sector may have their remaining student loan debt forgiven after just 10 years in the income-based repayment program, and this forgiveness would be tax-free, thanks to a ruling from the U.S. Treasury last year.

Qualifying for Income-Based Repayment

To find out if you qualify for income-based repayment on your federal college loans, you’ll need to contact your lender and provide information about your financial situation — you’ll need to demonstrate “partial financial hardship,” as defined by federal regulations.

Only federal Stafford and Grad PLUS student loans in good standing, along with consolidations of these college loans, are eligible for income-based repayment. Federal Perkins loans are eligible only if they’ve been included in a federal student loan consolidation. Other college loans are ineligible:

Private student loans. The income-based repayment program applies only to federal student loans. If you’re having problems meeting the monthly payments on your private student loans, you should contact the lenders to see if they’re willing to work out more affordable repayment plans for you. Keep in mind, though, that private student loans typically have less flexible repayment options than federal student loans.
Federal PLUS loans. If your parents took out PLUS parent loans to help you pay for college, they won’t be able to take advantage of income-based repayment on their PLUS loans. Consolidation loans that included PLUS parent loans are also excluded from income-based repayment. Any Grad PLUS loans you took out as a graduate student, however, as well as consolidations of Grad PLUS loans, are eligible.
Defaulted student loans. Your student loans don’t have to be new to be eligible — even long-time graduates may be able to qualify for income-based repayment on college loans taken out years ago. But you can’t be in default on your loans. To qualify for an income-based repayment plan, any federal college loans you have in default will need to be rehabilitated first.

College students are often cautioned to avoid private student loans unless absolutely necessary, urged instead to take advantage of all other financial aid options first.

The advice is sound. Generally speaking, private student loans, which are offered by banks, credit unions, and other private lenders, don’t offer the same level of borrower protections and benefits that government student loans do.

As a student, you should seek out grants and scholarships first — money for college that you won’t have to repay — before taking on student loan debt. Then, if you’re still going to need college loans, you should, in general, make sure you’ve maximized all your available federal student loans before you consider taking out a private student loan.

Interest Rates & Repayment Options

Federal education loans have fixed interest rates and more flexible repayment terms than private loans. The Department of Education offers income-based repayment options that keep your monthly payments at a figure you can afford, repayment extensions to give you more time to repay, and loan deferments and forbearances that can temporarily postpone your student loan payments if you’re facing financial hardship.

If you go to work in the public sector, you may also be eligible for the discharge of some or all of your federal student loan debts.

With private student loans, on the other hand, your interest rate is almost always variable, and private lenders aren’t required to provide the kind of repayment flexibility that comes standard on federal college loans.

The current foreclosure crisis that began mushrooming, in part, because of adjustable-rate mortgages should be enough to make anyone leery of adjustable-rate loans on anything.

But it’s worth keeping in mind that when interest rates are low, as they are now, adjustable-rate private student loans can have a lower interest rate than their fixed-rate federal counterparts.

If you have excellent credit, or if you have a parent or co-signer with excellent credit, you may qualify for the lowest-rate private college loans, which currently carry interest rates that are as much as 3-percent to 6-percent lower than the rates on federal student and parent loans.

Interest rates are destined to rise as the economy continues to recover from the recession, so private loan rates won’t always be this low, but if you or your parents are in a position to pay that private student loan off relatively quickly, you may be able to save money over a government-issued college loan.

Covering Your College Costs

So why take out a private student loan at all?

Private student loans are meant to “fill the gap” in college funding that may be left after you reach your federal student borrowing limits. In many cases, families find that scholarships and federal financial aid simply aren’t enough to cover the rising cost of college.

Without private student loans, you may not be able to pay for college or continue your studies.

Statistically, college graduates have a better chance of being gainfully employed than non-graduates do, and college graduates, on average, earn more money in their jobs than workers who don’t have a college degree. For you as a college student, better job and salary prospects may make the burden of a reasonable amount of private student loans easier to bear.

Working With Private Student Loan Lenders

Student loan companies aren’t deaf to the economic realities that college graduates are facing. Recently, some of the largest private student loan lenders have instituted new guidelines for the repayment and forgiveness of student loan debt.

Wells Fargo and Sallie Mae, for example, both announced this year that they would begin discharging private student loans upon the death of the borrower. Beforehand, that debt was being left to the co-signer to repay.

And as the recession and large swaths of unemployment among recent college graduates has led to higher rates of delinquency and default on college loans, some private lenders have shown a slight uptick in their willingness to work out modified repayment plans with troubled borrowers who are unable to repay their private student loans.

Being a Smart Student Borrower

For students who must turn to private education loans, it pays to shop around. Interest rates are always important, but they aren’t the only factor worth considering. Repayment policies, payment deferral options, default and late-payments penalties, interest-rate caps, and other terms may give some private student loan programs a clear advantage over others.

Always be mindful of the total amount of your debt from all sources, school loans and otherwise, and aim to limit your reliance on college loans, both federal and private.

The Department of Education’s National Student Loan Data System can help you track all your federal loan debt. Additionally, if you’re carrying debt from multiple federal college loans, the Education Department’s student loan debt consolidation program can help simplify the repayment process and may lower your monthly loan payments.

As you begin to repay your school loans, make it a priority to pay off the higher-interest loans first.

By taking advantage of college scholarships, using all your federal financial aid options, and minimizing the amount of debt you take on to pay for school, you can benefit from the careful and limited borrowing of private student loans to help pay for your college education.

What you need to know about financial aid BEFORE choosing a college.

With the high cost of a college education, no one wants to pay more than they must. Yet thousands of families pay too much for college every year because they don’t understand the basics of financial aid and don’t know the right questions to ask. So let’s learn what questions to ask.

Basics Part I

There are three types of financial aid for college: grants or scholarships, loans and work-study.

Grants and scholarships are free money that you do not need to pay back.

Most grants and scholarships come from the federal and state government or from the individual college.

Loans need to be paid back after college.

There are many loan programs available from the federal and state government. Most of these loans have fairly low interest rates. There are also private loans available although these generally have a higher interest rate.

Work-study is a job offered on the campus of the college.

Basics Part II

Need based aid vs Merit based aid

Need based aid is given by all colleges to students who have need. Anyone who can’t pay the full cost of the college has need.

A form called the Free Application for Federal Student Assistance (FAFSA) determines the amount of need for federal grants and scholarships. Many highly selective colleges also require a form known as the Profile form The FAFSA form is filled out after January 1 of the year the student will first attend college.

The FAFSA and Profile forms ask questions about the income of the parents and student using information that you gave on your tax returns. These forms also ask questions about the amount of money you have in savings or investments. The Profile form is more detailed than the FAFSA form. Once these forms are completed the government uses the FAFSA form to determine how much your family can pay for college. This is your expected family contribution or your EFC. Your EFC is the same regardless of the cost of the college. Similarly the individual colleges who use the Profile use that form to determine what your family can pay for college.

Your need is the cost of the college you are looking at minus your EFC. For example, if you are looking at a college that costs ,000 a year and your EFC is ,000, your need at that college is ,000. If you are looking at a college that costs ,000 a year your EFC is still ,000. Your need at this college is ,000.

Merit-based aid includes scholarships typically for students who have good grades or have some other special talent such as athletic or musical talent. Most highly selective colleges offer little or no merit-based aid.

Finally, in looking at colleges you should ignore the cost of the college. Yes, you read that right. Ignore the stated cost of the college when you are first deciding which colleges to investigate further. You will see why later in this article.

So now you know the basics. Now comes the fun part: How to save money by asking the right questions.

Questions to ask the colleges

Question 1- What percent of my need do you meet?

Remember that EFC, or expected family contribution that the FAFSA determined? Some colleges will meet 100% of your need. Need again is defined as the cost of the college minus your EFC. So what does it mean if a college says they will meet 100% of your need? It means that once the FAFSA or Profile form has determined how much you can pay for college, the college will pay 100% of the rest of the bill.

Colleges will typically meet the need you have using a combination of grants, loans and work study. Most colleges will award work study and loans first and if there is a need after that, the remaining need will be supplied by grants. The colleges will typically have a standard loan and work study amount that they award and you should ask about what these numbers are when investigating the college.

Let’s see an example of a financial aid award from a college that provides 100% of need with a student who has an EFC of ,000.

Total cost of college ,000

Expected family contribution $ 5,000

Need ,000

Financial aid award

Work study $ 2,000

Loans $ 4,000

Grants $ 29,000

At a college that meets 100% of your need you pay ,000.

But what happens if the college doesn’t meet 100% of need?

Many less selective colleges don’t pay the total amount of need that their students have. Let’s use the example of our imaginary college from above only this time assume that the school only provides 90% of need.

Total cost of college ,000

Families expected contribution $ 5,000

Need ,000

This college only provides 90% of the ,000 need or ,500. Thus, your out of pocket expenses are the ,000 EFC plus an additional ,500 for a total cost of ,500.

This example makes it easy to see why a school that meets 100% of need is often a better financial aid “deal” than a school who doesn’t meet all of the families need.

Many of the most expensive private colleges meet 100% of the students need while cheaper public colleges usually meet less than 100% of the need. This means that for many students it can be cheaper to go to an expensive private college than to attend a cheaper state school. Until you know what percent of need the college meets, don’t eliminate a college from consideration just because it is expensive.

Question 2- Do you have merit based aid?

Many colleges that don’t meet 100% of a students need do offer scholarships for some students. If your student is near the top of the application pool for a less selective college they may get some money if they qualify for merit based aid. Thus, in some cases, if the student is willing to look at a less selective college, they may get a better financial aid package. Here are some questions you should ask if the college provides merit aid.

How many merit awards are available?

What is the value of the merit awards available?

What are the qualifications to receive one of these merit awards?

This works even for families that don’t qualify for need based aid at all. If your student can qualify for a merit based award you won’t need to pay the full stated cost of the college.

Question 3- How is financial aid determined after the first year?

Some colleges have a policy of providing good financial aid for the first year and then substantially reducing the grant aid in the following years while increasing the loans. You should ask the college in which you are interested how they determine financial aid after the first year and what the average loan is after the first year. While it is typical that the amount of loans will increase each year if the increase is substantial you will want to take that into consideration.

Question 4- What is the average loan amount at graduation of those students who have loans?

This question will give you the best indication of the amount of loans that this college requires compared to other colleges in which you may be interested. Although most students will have some loans when they graduate, you don’t want this amount to be any more than necessary.

Question 5- What is your policy regarding outside scholarships?

Most colleges will subtract money earned in outside scholarships from your financial aid package. Some colleges will reduce the loan burden by the amount of the scholarship, but other colleges will reduce your grant money. If the college reduces the amount of loans you have to take out that is a benefit to you. There is no benefit to you if the college reduces the grant aid.

Question 6- What is your packaging policy?

Most colleges give a financial aid package that includes grant money, loans and work study. But each college combines this money differently. Specifically you want to know:

What percentage of an aid package from your college is grant vs. self-help (loans, work study)?

The greater amount of grants versus loans and work study the better for the student.

Do you have a preferential packaging policy?

Preferential packaging occurs when a college gives a better financial aid package to a student with a stronger academic background than to another student with the same financial need but with a weaker academic background..

Question 7- What is your four year graduation rate?

What difference does a college’s four year graduation rate make? This is an important question that many people never consider. Another way to phrase this is, How many years of college am I going to have to pay for? If the college has a high four year graduation rate, you will most likely only have to pay for four years of college. However, if the college graduates most students in six years then you can plan on paying for six years of college, not four.

Conclusion

Now that you know something about financial aid, including the questions to ask each college you are considering, you can make an informed decision in paying for a college education and hopefully also save some money.

Not every student arrives at college fresh out of high school. A growing number of students over the age of 25 are returning to the college classroom or enrolling at a college or university for the first time — a trend that means more independent students are seeking financial aid and student loans as a way to pay for college.

This trend also means that some returning students may have already exhausted their available federal student loans. Federal college loans not only carry annual borrowing limits but lifetime maximum borrowing limits. Students returning to college who previously took out federal college loans their first time around may have less federal student loan money available to them.

The Association for Non-Traditional Students in Higher Education reports that students over the age of 25 represent nearly half of all currently enrolled college students. This migration back to the classroom is not merely the product of the current economic downturn, however: According to the U.S. Department of Education, the number of students age 25 or older in college classrooms rose from 28 percent in 1970 to 41 percent in 1998. The number of students age 35 or older at degree-granting institutions increased from 823,000 in 1970 to nearly 3 million in 2001.

Clearly, the current “aging” of the college student population was underway long before the Great Recession took hold.

Finding Financial Aid as a Returning or Older College Student

Determining eligibility for federal financial aid as an older student can be challenging. In some cases, today’s older student may be relatively well-established financially and may hold a number of assets, including real estate, investments, and retirement savings. At the same time, the older student may have additional liabilities, including a mortgage, credit card debt, and student loan debt from a previous run at the college-and-university track. S/He may also be supporting children who are themselves in college.

The FAFSA

For any student, regardless of age or level of educational attainment, the first step in finding financial aid for college need to be the filing of the Free Application for Federal Student Aid (FAFSA). The FAFSA takes into account a student’s broad financial picture — from income, assets, and liabilities to the number of other family members in college — to determine eligibility for federal financial assistance.

Federal financial aid can include need-based grants (Pell Grants) and subsidized student loans (Perkins loans and subsidized Stafford loans), as well as unsubsidized student loans (unsubsidized Stafford loans) that are available regardless of a student’s financial need. For graduate students, credit-based graduate student loans (Grad PLUS loans) are also available.

The Financial Aid Office

If you’re a returning student, a consultation with a financial aid officer at your institution could be very helpful, since rules and regulations regarding student financial aid have changed significantly in the past few years. A financial aid officer may also be able to help you determine your eligibility for federal student loans and how previous student loans may affect your current borrowing limits.

Your financial aid office will also have information about locating grants, scholarships, and work-study opportunities, though many older adults may already be employed full-time. Consider asking your financial aid office about student loan companies that offer non-federal, private student loans, which may be used to pay schooling costs not already covered by your federal student loans or other federal financial aid.

Other Financial Aid Considerations

Returning students may also be eligible for itemized tax deductions related to college expenses. These tax deductions may help take the bite out of returning to school. Consult a tax advisor for help.

Federal financial aid is largely reserved for students who are seeking a degree, although in some cases, non-degree-seeking students may be eligible for federal financial aid if the courses they take are prerequisites for a degree program.

Keep in mind, however, that as a student loan borrower, you’ll be on the hook for any student loan debt you incur, even if you don’t complete a degree as planned. Current U.S. bankruptcy law prohibits bankruptcy courts from discharging either federal or private student loan debts except in the most extreme of circumstances, so if you’re a prospective returning student, make sure to thoroughly research all your academic options and their costs before entering a degree program that will require you to take on significant debt from student loans.

The National Commission on Fiscal Responsibility and Reform has issued a report that recommends the elimination of subsidized federal student loans in order to reduce federal spending. The recommendation is one of 50 that the bipartisan panel, which was created by President Obama and charged with finding ways to reduce the federal deficit, brought forward.

Federal subsidized student loans are government-issued student loans on which the government pays —subsidizes — the interest while a student is in school or in an approved deferment period. During deferment periods, which are granted on a case-by-case basis when a student loan borrower is experiencing financial hardship or other extenuating circumstances, the borrower isn’t required to make principal or interest payments on his or her federal college loans.

Subsidized student loans, awarded on the basis of financial need, are available to low-income students and students from low-income families. The President’s fiscal commission estimates that eliminating the federal interest payments on these subsidized college loans would save about  billion annually.

The proposal to eliminate subsidized federal student loans isn’t a recommendation to shutter the federal student loan program altogether. Federally funded student loans are also available in an unsubsidized form, and these unsubsidized student loans are awarded to eligible students, regardless of income bracket, who qualify for federal college financial aid to help them pay for college.

Do Student Loan Subsidies Benefit Students?

A growing number of policy groups support dispensing with federally subsidized student loans. The College Board recommended the same move in 2008, and some Democratic lawmakers also included the elimination of subsidized student loans in the initial draft of the student loan reforms that were enacted in 2009. The provision was dropped after student advocates and higher education lobbyists successfully persuaded House Democrats to retain the student loan subsidies.

Supporters of dropping the subsidized interest benefit say that subsidized student loans don’t do anything to make college more accessible to the low-income students to whom the loans are awarded, since borrowers don’t reap the benefit of the subsidy until after they’ve graduated.

Others who support the move to do away with subsidized student loans argue that student borrowers shouldn’t receive a benefit designed to reduce student loan debt that’s based on what the borrower’s family income was 10 or 20 years earlier.

Instead, proponents contend, already-available flexible student loan repayment plans like income-dependent payments, graduated payments, and repayment term extensions are more effective and fairer.

A new income-based repayment plan, instituted last year, is based on the student loan borrower’s post-graduation income, a better measure of a borrower’s long-term financial outlook.

Graduated repayment, in which a student loan borrower’s monthly payments start out low and gradually increase every two years — designed for borrowers who expect their income to increase steadily over time — is available to all borrowers of federal college loans, regardless of their family income at the time they attended college.

More Proposed Changes to Federal College Financial Aid

Eliminating federal student loan interest subsidies isn’t the only change the fiscal commission recommends. The commission’s deficit-reduction proposal would also put an end to payments to colleges and universities for the administration of campus-based federal financial aid programs.

Colleges and universities administer certain federal financial aid awards locally —Supplemental Educational Opportunity Grants, Perkins loans, and federally funded work-study programs. A school may retain as much as 5 percent of the federal financial aid funds provided for these programs to cover the cost of administration. Institutions that distribute federal Pell Grants also receive a small fixed payment to cover administrative costs.

Under the proposed deficit-reduction plan, the 5-percent administrative fee would be eliminated, and all federal funds would be delivered in the form of student financial aid, with no portion of those funds being siphoned away any longer in the form of administrative costs.

The commission’s rationale for eliminating these administrative fees is that colleges and universities benefit from federal grant programs because, unlike college loans, the federal grant dollars effectively increase enrollment by making college more affordable for students.

From Policy Proposal to National Law

The fiscal commission doesn’t have the final say on which recommended reforms are enacted. Currently, the commission’s report is in draft form. The commission must prepare a final recommendation no later than Dec. 1, 2010, and the final draft must have the approval of at least 14 of the commission’s 18 members.

Once the report is finalized and presented to the White House, legislators are expected to take up the recommendations and convert them into legislative mandates.

The commission’s recommendations are designed to balance the federal budget by 2015. If adopted, the recommendations would involve a broad set of austerity measures, including both spending cuts and tax reforms.

It is imperative for a college student to get a student loan if he or she wants to continue his or her higher education. Because of the rising cost of continuing higher education, student loans play a critical role in helping them actualize their higher education goals. Student loans are of two types.They are:

Federal Student Loans

Private Student Loans

1. Federal Student Loans:

Federal Student Loans are provided by the Government.These student loans are highly useful for the poor students looking for a student loan.Federal Student Loans offer low interest rates and are flexible according to the type of student loans.These loans can be obtained very easily because credit score of the college students is not taken into account seriously.The main qualification for these student loans is that you should be an US Citizen or a permanent resident of the United States.

2. Private Student Loans:

Some students seeking college loans go for private student loans since private student loan lenders offer more money for their higher education than the federal student loans.If you are a student , you may be able to get a student loan from a bank.But, in most cases, the amount offered to you will not be sufficient to cover the absolute cost of your higher education.Here, private lenders come to your aid.They decide first of all how much can be provided as student loans & they offer generously once they have decided to give.

Students can make use of the internet for getting suitable student loans for continuing their education.While internet is used for finding information on car purchase, house for sale etc., it is also useful for choosing suitable student loan offers.The students can conveniently choose the correct lender for their student loan needs .They can simply fill the online forms available on the internet & they do not require any commitments on their behalf other than filling the online form.They need not walk far or stand in line.

What Are Campus Loans?

Every Year, educational institutions get reasonable amount for giving out as student loans.This money can be availed by the students as student loans.The students will pay back the amount to the institutions with interest & again the amount is reloaned to other poor students for continuing their higher education.

What Are FFELP Loans?
The students are informed about a list of approved lenders who provide student loans to the students.These are called FFELP Loans are SLS Loans.

Consolidation Of Student Loans

Student debt consolidation can help the students deal with the excessive amounts of debt accumulated by bringing all the loans into a single loan.This can help them avoid dealing with various lenders with different rates of interest.

If you’re a parent or ex-student who took out any Federal PLUS Loans or Stafford Loans prior to July 1, 2006, those student loans are subject to variable interest rates that will adjust every year. When interest rates rise, your monthly student loan payments may also go up. If you’re on a tight budget, higher monthly payments may prove difficult to manage. Do you wish, instead, you could have a set monthly payment for your federal student loans that you know would never change? Student loan consolidation may be for you.

Federal student loan consolidation gives you the security of a fixed interest rate. By consolidating your federal parent student loans, you’ll replace your variable-rate college loans with a fixed-rate consolidation loan, so you’ll never have to worry about interest rates rising and leaving you guessing about your monthly payment amount.

Take the Hassle Out of Repaying Your Student Loans

If you have multiple college loans in repayment and you’re juggling multiple bills, multiple due dates, and multiple monthly payments to multiple lenders, a student loan consolidation could help make your repayment easier to manage. With a student loan consolidation program, you can bundle all your eligible federal parent or student loans into one single consolidation loan with just one monthly bill and one monthly payment that’s fixed for the life of your college loan.

Cut Monthly Payments on Your Student Loans by up to 40%

Besides offering you convenience and the security of a fixed interest rate, a student loan consolidation could also help you cut your monthly student loan payments almost in half. When you consolidate your college loans, you may be able to extend the repayment term on your parent or student loans by up to 20 years. With that longer repayment term, since you have more time to repay, the amount you have to pay each month will typically go down. By consolidating your college loans, your monthly payments could go down by up to 40%!

Apply in Minutes to Consolidate Your Student Loans

You can apply for your student loan consolidation in minutes, either online or with a quick phone call to NextStudent. It’s fast, easy, and free to apply, and there are NO fees, NO credit checks, and NO co-signers required.

There are also no prepayment penalties on your Federal Consolidation Loan. When you consolidate your student loans with NextStudent, you’ll never be charged extra for paying more than the minimum each month or for paying off your student loan consolidation early.

Who’s Eligible for Student Loan Consolidation?

To be eligible to consolidate your own federal student loans, you can’t currently be enrolled in school more than half time. The student loans you’re looking to consolidate must be in repayment, in a grace period, or in an authorized deferment or forbearance period.

Your parents can consolidate the PLUS loans they took out to help you pay for school as soon as those student loans have been fully disbursed and have entered repayment, even if you’re still in school full time. Although your parents can consolidate their PLUS loans, you won’t be able to consolidate your own college loans with your parents’ loans.

Student Loan Consolidation for Private Student Loans

If you have private student loans in addition to (or instead of) your federal student loans, you won’t be able to consolidate your private student loans under the federal student loan consolidation program. But you may be eligible to consolidate your private student loans separately with a Private Consolidation Loan, which offers the same convenience of a single consolidated loan for your private student loans.

NextStudent believes that getting an education is the best investment you can make, and we’re dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation at NextStudent.com.