| Availing an educational loan is quite common, | | | | FFELP, Perkins, Health Professional Student Loans, |
| especially with skyrocketing fee and expenses. Unless | | | | FISL, HEAL Guaranteed Student Loans NSL and |
| you hail from a well-to-do family, you may even have | | | | Direct loans. |
| to look for more that one sources for procuring | | | | You can arrive at the interest rate charged on the |
| these loans. Procuring these loans might not be as | | | | loan after consolidation by rounding off the weighted |
| tough as its repayment. Due to increased repayment | | | | average interest rate to the nearest one eighth of a |
| burden, payment becomes quite taxing especially if | | | | percent. The consolidation process is designed in such |
| you do not have sufficient financial support. This is | | | | a way that interest rate is hiked only in small |
| when student loan consolidation comes to our aid. | | | | proportions. However, this does not mean that |
| With consolidation, students not only save money | | | | weighted interest rate would alter the cost of the |
| but also tend to reduce the burden. | | | | loan taken. Another thing which borrowers need to |
| These loans try to reduce your monthly payments | | | | know is that the new rate charged usually lies |
| by extending the tenor sometimes even up to thirty | | | | between normal rates prevailing in the market. Hence |
| years. Student loan consolidation can be compared | | | | do not get mislead by false commitments given by |
| with mortgage refinance. However, consolidation is | | | | companies stating that they would charge least rates |
| primarily applicable to federal loans. Some of the | | | | in the industry. |
| popular federal loans that are worth mentioning are | | | | |