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									             YOUR GUIDE TO STUDENT LOAN CONSOLIDATION




Student loan consolidation program is popular among those students who wish to combine their
unsettled obligations into aloan. Nowadays, government in most countries offers Studentloans
in supports for the payment of their expenses in colleges and universities.

This program aims to help the borrowers in paying the cost of their education in low interest
rates depending on one's credit and financial status. The consolidated loans have a fixed monthly
interest rate for the entire duration.

The parent and the student shall consolidate their loansseparately. They cannot combine their
loans, because the same person can only attain consolidation. Married student cannot also
combine their loans together with their partner in accordance to the provision that was revoked
effective July 1, 2006.

When married students combine their loans, both of them will be responsible for the full amount.
The consolidated loans cannot be break up for any reasons. In order to avoid the occurrence of
this problem if the couple gets divorce, Congress rescinded this provision as part of the Higher
Education Reconciliation Act of 2005.

Enumerated below are the two means in acquiring information regarding student loans.

1. Through the internet, borrowers can easily find institutions that offer lowest interest rates and
they can make instructive comparisons. It also offers fastest and reliable source of data regarding
this program, it answers the essential questions that the borrowers may inquire. Moreover,
through this technology they can easily apply for the student loan consolidation program in
their most convenient time.

2. Financial aid office of any learning institution can provide thorough information regarding the
loan program for thestudent. The student and the institution were the only two parties involve
in the loan program. However, there were, only a limited Postsecondary who participates in loan
consolidation, nevertheless the borrowers can assure in simple, fast, and direct transactions.
Before an individual engages into the student loanconsolidation, she/he has to consider some of
the important factors. Firstly she/he has to keep in her/his mind that a studentloan consolidation
does not lessen the amount of debt; it only reduces the payment each month, but it can only
prolong the time for her/him to pay the loans she/he have and increases entirely the loans
obtained.

The maximum year that the consolidation shall allow the borrowers to pay back the loan is 30
years. Moreover, this could mean an added interest to the loans. Secondly, the interest doubles if
the loan cannot be pay in a monthly basis. One must assess the fee of paying back her/his loans
that are not combine compare when she/he will merge them.

Lastly, loans that were been consolidated cannot be pulled back so he/she have to be well-
informed regarding the program before taking some relevant action.

The following are the expenses that must considered in grantingstudent loans.

University fees such as the entrance fee, examination fees, miscellaneous fees such as laboratory
and library fees and purchasing of books. Traveling abroad for studies have been consider in
granting loans, with these corresponding expense such as the board and lodging.

How to apply for Student Loans Consolidation

She/he has to fill up an application form, which can be secure in any of institutions granting
student loans like the Federal Family Education Loan Program or they can directly obtain it
from the US Department of Education.

In any case, the terms and conditions are generally the same. She/he has to answer accordingly
all the needed information to avoid confusion on the part of the lender. Therefore, the loan will
be process immediately.

She/he has to prepare one of the following financial statements: Bank or credit account, proof of
income or any financial records. These statements can greatly help in calculating for the interest
rate of the loan and in paying it.
She/he has to acquire the list of expenses for the course they are taking up; this is applicable for
the current student.

Remember that one should understand that once the loans were been consolidated, it has no
turning back. One should be confident and understand all the essential information regarding
theStudent Loans Consolidation. Borrowers can only consolidate once; she/he has to be sure
with the financial action she/he will make before losing money because of wrong attempt.

								
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