All About Student Loan Debt Consolidation

What Is Student Loan Debt Consolidation?
Who is eligible to consolidate student loans?
What kind of student loan debt is eligible to be consolidated and why does it make sense to enter a student loan debt consolidation program?

These are all great questions. Let’s start by taking a look at how student loan debt consolidation works.

Definition of Student Loan Debt Consolidation

Student loan debt consolidation is designed to help student borrowers who have two or more federal student loans from the list of eligible student loan types listed below:

  • Federal Subsidized Stafford Loans (SS)
  • Federal Unsubsidized Stafford Loans (US)
  • Federal Parent Loans for Undergraduate Students (PLUS)
  • Federal Supplemental Loans for Students (SLS)
  • Federal Perkins Loans (PERK)
  • National Direct Student Loans (NDSL)
  • Loans for Disadvantaged Students (LDS)
  • Auxiliary Loans to Assist Students (ALS)
  • Federal Subsidized Consolidation Loans (SCON)
  • Federal Unsubsidized Consolidation Loans (UCON)
  • Health Education Assistance Loans (HEAL)
  • Health Professions Student Loans (HPSL)
  • Nursing Student Loans (NSL)
  • Federal Insured Student Loans (FISL)
  • Guaranteed Student Loans (GSL)
  • Federal Direct Subsidized Stafford Loans (DSS)
  • Federal Direct Unsubsidized Stafford Loans (DUS)
  • Federal Direct Consolidation Loans (DCON)
  • Federal Direct Parent Loans for Undergraduate Students (DPLUS)
  • Federal Perkins Loans (PERK)
  • Health Professions Student Loans (HPSL)
  • Nursing Student Loans (NSL)

If you do have one or more of any combination of these federal student loans, you are most likely making payments in different amounts, at different times, to different lenders. Also, chances are good that you are paying different interest rates on each of your student loans. Student loan debt consolidation is designed to consolidate your payments into one simple loan while lowering both the interest rate and the monthly payment amount.

Student loan debt consolidation lets you reduce your monthly payment amount by providing you with the ability to extend your student loan repayment term to either fifteen or thirty years. When the longer payment terms are combined with the lower interest rates that student loan debt consolidation companies are able to offer, monthly payment amounts drop like a rock and your cash flow is improved instantly!

Student Loan Debt Consolidation Eligibility

You are eligible to participate in a student loan debit consolidation plan as long as you are not in default on any of your federal student loans. Student loan debit consolidation is a right that is granted to you by Congress. No one can take that right away from you. Even if you are in default, you can usually re-apply to consolidate your student loan debt after you have cured the default by making a minimum of three payments to the lender who declared you to be in default.

Student loan debt consolidation is an excellent way to free up your money to take care of other living expenses or to help you save for a new car, dream vacation or even your wedding day! Look into student loan debit consolidation today. It definitely makes sense.