When consolidating student loans, it’s imperative to be familiar with what you’re getting into first. The consolidation of student loans is not a difficult procedure, but it often appears to be for most students. However, there are several regulations and rules you have to keep in mind before you decide to consolidate the loan into a manageable one. Here are some of the most imperative regulations and facts pertaining to student loan consolidation including a basic Introduction to Student Loan Consolidation. Ensure that you understand each of these facts before you go through with the consolidation process.
The Student Loan Consolidation Is Free
You should never pay any fees for consolidating your student loans, the process is totally free. If the lender is charging you to consolidate your loans, you should take your business somewhere else. Many student loan consolidation scams have emerged. These scams are frequently referred to as “advance fee loan scams” and are very common.
You Cannot Consolidate Loans While You’re Still in School
Consolidation of student loans can only be done after your loans enter their grace period, which is six months after dropping out of school or graduation. Consolidation can as well be done once repayment of loans starts, although it is advisable to consider consolidation before this point.
You Can Only Use Your Name to Consolidate the Student Loans
This rule seems obvious, but in cases where the student has their parents’ name on any of the student loans, or is married, it might come into play. Parents and students might consolidate their loans. However, they cannot combine them into one consolidated loan, they must all be separated. The same thing holds true when it comes to married students, who both have the student loan debt. Married students cannot combine their student loan debt into one consolidation loan.
Graduates and Students May Consolidate With Any Lender
There are no restrictions that limit the lender who is eligible for consolidating student loans. Therefore, you might choose whatever lender you wish. This gives you the chance to shop around for the best lender with the best incentives and interest rates. However, always go for lenders who are ready to give you easy and manageable loan repayment terms.
All loans are eligible for consolidation
Any kind of federal student loan can be consolidated, including single student loans. Remember student loan consolidation is a government program that allows students to combine all existing single loans into one manageable loan. With this in mind, any loan from any lender can be put into the mix.
Student loan consolidation is offering former students a great chance of avoiding a life time of debt by providing simpler and easy to pay loans. There are a lot of benefits associated with consolidation. To start with, you will be able to get better interest rates once all the loans have been consolidated. Secondly, it’s easy to focus on repaying one loan than numerous loans from different lenders. In case you have not yet considered consolidating all your student loans, then you are missing out on a lot of advantages. Make sure you give it a thought today!