The analysis on the student loan consolidation options

With the rising cost of education and living, most of the students and their parents nowadays seek student loans. Student loans indeed are helpful for completion of your higher studies. However, majority of the people fail to juggle their debt payments and with that the student loan debt payments too. In fact, student loan debt is a factor of high concern for the whole nation and the government too, at the same time. So, if you are overburdened with too much of student loan debt you can opt for student loan consolidation. Therefore, you may have to consider the nuances of consolidating the student loans. For, example you may have to consider the existence of free debt consolidation program.

 Student loan consolidation and the options

Debt consolidation helps in two main ways. It lowers the interest rate and also reduces the number of debts you owe. Therefore, it is quite obvious that with consolidation paying down the student loans become an easy option. If not easy, then at least it becomes more of a manageable process.

What are the options through which you can consolidate student loans? Can you get the benefit of free debt consolidation? There definitely is nothing called free debt consolidation, if you are going to get the help of a third party professional. However yes, if you are going to consolidate the student loan debts of your own it can be termed as a free option, for, you would not be required to pay any extra fee to anybody for the consolidation.

Federal student loan consolidation

There are various options under which you can consolidate your federal student loans. The federal student loans do not come under the SOL or the Statute of Limitations. So, if you start having problems in making the payments on these, it would be better and wise of you to consider the options under which you can consolidate the student loans.

Both the parents of the students and the students can go on to consolidate the student loans. The parents are allowed to consolidate the PLUS loans any time. Students on the other hand cannot consolidate while in school. However, students can get the option to consolidate the loans only within the grace period or only if the loan enters the repayment period. Again if a loan is in default but the lender can offer a satisfactory repayment agreement, you can get that consolidated too.

Students who have got married cannot get the option to consolidate the loans together. Although this was an option it was pit off from 1st July 1, 2006. That was done mainly because if the two students got divorced liability issues started to turn complex.

You can consolidate the Direct Loans, Perkins Loans, Federal Insured Student Loan or the FISL, FFELP Loans, Nursing Student Loans or the NSL, Health Professions Student Loans or the HPSL and the Loans for Disadvantaged Students or the LDS.

As for the private student loans you can consolidate these through a simple debt consolidation process. However, you cannot get these consolidated with other debts or liabilities.

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