| Federal Student Loans are easier to pay and brings | | | | Again, refinancing student loans depends on the |
| less long term hassle and panic if these debts are | | | | borrower. The United States Department of |
| converted into Federal Student Loan Consolidation. | | | | Education does not in any way allow any borrower |
| Consolidating your loan means that all the different | | | | to refinance a student loan consolidation. But if in |
| types of student loans you acquired will be combined | | | | case a borrower has an additional federal loan that is |
| in one loan. Doing so has many advantages. Since | | | | not originally included in the loan consolidation, these |
| federal student loan interest rates are currently at | | | | debts may then be added and calculated again into a |
| their lowest, loan consolidation actually means that | | | | another Federal Consolidation Loan. Another |
| the interest rate used for the whole duration of your | | | | advantage when one avails of student loan |
| loan is fixed. | | | | consolidation is that there are no fees or charges |
| However, there are also disadvantages when one | | | | incurred. The United States Department of Education |
| avails student loan consolidations. It all depends on | | | | does not in any way make charges or collects any |
| you, really. If you think it would take you a longer | | | | fees to any borrower who avails of the student loan |
| time to pay off your student loan, you will then | | | | consolidation. |
| consequently pay more interest during the course of | | | | So now that the details and advantages have been |
| your whole loan repayment. However, since in | | | | outlined, the following is a basic list of some student |
| consolidating your loans, there are really no penalties | | | | loans that are eligible to be consolidated: PERK - |
| in prepayment and if you continually pay the same | | | | Federal Perkins Loans, formerly Nations Defense |
| amount of payments before actually consolidating | | | | National Direct Student Loans (NDSL), PLUS - Federal |
| your loans, the interest you will incur would not | | | | PLUS (Parent) Loans, SCON - Subsidized Federal |
| increase. You will be able to pay the student loan off | | | | Consolidation Loans, UCON- Unsubsidized Federal |
| faster than when you did not consolidate your loans. | | | | Consolidation Loans, SLS - Federal Supplemental |
| One category you could take into consideration | | | | Loans for Students (formerly Auxiliary Loans to |
| regarding federal student loans is availing of the FFEL | | | | Assist Students (ALAS) and Student PLUS Loans), |
| consolidation loan. This loan program helps any | | | | SS - Subsidized Federal Stafford Loans & |
| borrower via multiple repayment schedules. Through | | | | Guaranteed Student Loans (GSL), DSS - Direct |
| the FFEL loan consolidation program, only one | | | | Subsidized Stafford Loans, DUS - Direct Unsubsidized |
| payment is made each month. In the FFEL program, | | | | Stafford Loans, DPLUS - Direct PLUS Loans, DUCON |
| the student loan consolidation you will be acquiring will | | | | - Direct Unsubsidized Consolidation Loan, including |
| be made by a commercial lender, after which credit | | | | Direct PLUS Consolidation Loans. |
| bureaus will tell you that you already have a zero | | | | Student loan consolidation has another advantage. A |
| balance in your account, after doing so you will then | | | | borrower is still entitled to avail of the same Federal |
| sign a fresh promissory note indicating that you will | | | | benefits. This is because student loan consolidation is |
| have a new interest rate and schedule of repayment. | | | | a federal program. And being it a federal program, a |
| But, in order to avail of the FFEL student loan | | | | borrower is more than welcome and is entitled to |
| consolidation, you must currently be in repayment on | | | | various benefits such as deferment, interest that is |
| the loan you defaulted or that you have been able to | | | | tax deductible and forbearance. Plus, the student loan |
| make at least three voluntary and on time monthly | | | | is guaranteed by the government and is insured |
| payments in full. | | | | federally. |