| It is common that students nowadays are taking | | | | In order for this program to work, you will have to |
| more than one loans to further their studies in | | | | firstly file an application with your selected loan |
| colleges or universities. And problems start to arise | | | | institution and wait for the approval. At the mean |
| when you have to juggle between work and various | | | | time, you can look into the different repayment plans |
| payments to multiple loan agencies. | | | | offered by the institutions to see which plan you are |
| Then you heard about student loan consolidation but | | | | most comfortable with. |
| what is it exactly? | | | | Before you sign the paper, make sure you |
| This is a simple loan repayment program where you | | | | understand and agree with all the terms and |
| combine all your outstanding student loans into one | | | | conditions. Remember to clarify with your loan |
| so that you only make one payment to a single loan | | | | agency if there is any hidden cost or extra fee |
| agency every month. Let's say you are holding 3 | | | | involve. Surely you don't want to find out last minute |
| federal student loans and you are currently making 3 | | | | that you have to pay extra processing fee when |
| different payments with 3 different interest rates to | | | | you are close to paying up your loan. How about |
| 3 different loan agencies. By consolidating these 3 | | | | further discount or any incentive when you pay on |
| loans, it is seems that your outstanding loans are | | | | time? You deserve to know. |
| being paid off and you are now only require to focus | | | | Once the paper has been signed, you should keep |
| in a single loan. This can significantly make your life | | | | yourself update with the application status. This loan |
| easier. | | | | consolidation process should not take more than 180 |
| Currently, there are two student loan consolidation | | | | days. If you didn't receive any news until then, you |
| programs in the market and one of them is offered | | | | will have to check with the loan agency to see what |
| by the federal government and is known as the | | | | is the issue with your application. Should your |
| federal student loan consolidation. Some found that | | | | application be decline, you will have to look for |
| this program is more flexible because it requires less | | | | another loan agency. |
| documentation and students are not subjected to | | | | Once your application has been approved, the new |
| credit check. | | | | loan agency will contact you for the good news and |
| The other loan consolidation program is offered by | | | | to discuss about the interest rate. It is possible to |
| the private sectors like banks and credit unions hence | | | | ask for better interest rate when you are |
| it is called the private student loan consolidation | | | | consolidating your student loan with the private |
| program. Those who are not eligible for the federal | | | | sectors but you might not enjoy the same privilege |
| government loan consolidation will most likely apply | | | | with the federal loan consolidation. This is because |
| for this program. | | | | the interest rate offered by the federal government |
| How does the student loan consolidation works? | | | | is fixed at the current low rate. |