| Consolidating student loans is simple: If you meet | | | | loan you have. A private student loan is a loan that |
| certain requirements and you have student loans, | | | | you or your parents took out from a private lender, |
| you can consolidate them into a single loan. What this | | | | and loans like this are not backed by the federal |
| means is that the lender you choose will pay off the | | | | government and do not qualify for federal student |
| current student loan amounts that you still owe, and | | | | loan consolidations. |
| will combine the different amounts that you owe into | | | | If you are falling behind in your payments on this |
| just one loan. When the lender does this, you will | | | | type of loan, call the lender that you make payments |
| probably see your monthly payment on student loans | | | | to and ask whether you can consolidate your loans |
| drop. And that's just what you are looking for, an | | | | with them or negotiate lower monthly payments. |
| easier and more affordable way to pay down your | | | | For consolidating student loans, you have to:o Have |
| student loans. | | | | at least $10,000 in student loan debt. This $10,000 |
| Both students with student loans, and parents who | | | | must be all federal student loan debt, not a mixture |
| owe on PLUS loans that they took out for their | | | | of federal and private loans.o Be in your grace period |
| students, can consolidate their loans. Consolidating | | | | or repayment period. Your grace period is the time |
| student loans (as long as they are federal student | | | | period after you take out a loan before your |
| loans) does not require that you have a credit check | | | | payments start. Your repayment period begins after |
| done to prove that you qualify. Is that surprising to | | | | your grace period ends. Your repayment period is |
| you? Well it's true. Your credit score, no matter what | | | | when you make monthly payments on your loan(s).o |
| it is, does not disqualify you from getting a federal | | | | Not be in default status on any of your loans. Default |
| student loan consolidation approved. | | | | status is when you have fallen several months behind |
| To start out, you'll need to know whether your loans | | | | in your payments and you have received a notice of |
| are federal student loans or private student loans. | | | | default from the lender. If you are in default, don't be |
| Federal student loans have the backing of the federal | | | | afraid to look for a consolidation loan anyway. A |
| government and are usually known as the Perkins | | | | lender may be able to work out an agreement on |
| Loan, Stafford Loan, PLUS (Parent Loan for | | | | how you can pay off the default and still consolidate |
| Undergraduate Students) or loans from the | | | | your loans.o Be a U.S. resident or permanent resident. |
| Department of Education. There are also other kinds | | | | Notice that citizenship is not a requirement, just |
| of federal student loans, so you'll need to look at | | | | residency. |
| your student loan report to check on what type of | | | | |