| Loan Consolidation is done with the help of private | | | | consolidated amount, they can enjoy a weighted |
| institutions as well as by the Federal Government. In | | | | average calculation that would establish an |
| the case of Federal student loan, the existing debts | | | | appropriate rate based on the current interest rates. |
| are purchased & closed by a debt consolidation | | | | · This process is something like refinancing, |
| company or by the United States Department of | | | | but the key difference is that the interest rates do |
| Education. This primarily depends on the type of | | | | not change in this case. |
| Federal low interest loan that a student holds. The | | | | · Taking up loan consolidation services is |
| interest rates for student loan are based on annual | | | | better. The private lender charge lot of fees. |
| rate in United States. These rates can be anywhere | | | | · It improves the student's credit rating for |
| between minimum of 4.70% to maximum of 8.25% | | | | the future as well. |
| for the Federal Stafford loans and 9% for the Plus | | | | · It reduces the actual amount of your |
| loans. | | | | monthly payments significantly and simplifies the |
| Here are some essential tips to consolidate student | | | | finances. |
| loans with lower interest rate | | | | · Some of the options that you can take up |
| · The current US consolidation program | | | | are Federal Stafford, Perkins, Parent PLUS, |
| allows the students to consolidate once with the | | | | Government Direct Credits, etc. |
| private lender and then re-consolidate again only with | | | | · They help you save your time that you |
| the Department of Education.Re-consolidating does | | | | can further invest in earning or studies. They share a |
| not change the rate of interest. | | | | major chunk of your responsibilities like |
| · In case the students combine the credits | | | | documentation, etc. hence keep you relaxed. |
| of different types & rates into one new | | | | |