Why Should I Consolidate My Student Loans? | Federal Student Loan Consolidation
Federal Student Loan Consolidation provides many benefits, even if you’re currently making your monthly payments without any difficulty. With Federal Student Loan Consolidation you will have only one monthly bill for your Federal Student Loans.
The interest rate on a Federal Student Loan Consolidation is fixed for the life of the loan. Both Federal Stafford Subsidized and Unsubsidized Loans that were disbursed before July 1st, 2006 carry variable interest rates that adjust annually. Consolidating will help you with a more flexible payment by reducing your monthly student loan payment up to 60%.
Consolidation is a good way to free up money to put towards higher interest bearing debt such as credit cards or car loans. ACS Student Loans With Low Interest will help with your credit scores and the debt-to-income ratio (DTI), both are key factors if you’re looking to purchase or refinance a home.
What are the benefits of Federal consolidation loans?
It can reduce your monthly payment up to 60%, freeing up cash for higher interest-bearing debt. Consolidation will lock in your interest rates for the life of the loan to help protect you from future rate increases. One convenient monthly payment for all your Federal Student Loans. Student Loan Consolidation will help improve your credit score and the debt-to-income ratio (DTI).
Student Loan Consolidation provides flexible repayment options
Best Student Loans in New York allows borrowers (both parents and/or students) to lock in today’s low Federal interest rates and to combine several federal student loans payments into one simple monthly payment. With consolidation repayment can be spread over a longer time period, so your monthly payment amount will likely be lower. Our Student Loan Consolidation program can reduce your interest rate at least an additional 1.25% with our interest rate benefits plan.
What types of student loans may be consolidated?
Federal Stafford Loans – both Subsidized and Unsubsidized
Direct Loans Stafford Loans – both Subsidized and Unsubsidized
Federal Perkins Loans
Federal Parent PLUS Loans
Direct Loans Parent PLUS Loans
Federal Consolidation Loans
Direct Loans Consolidation Loans
You cannot combine non-federal loans of any kind with federal student loans through the Federal Consolidation Program. Why? Because they are different types of loans. Federal student loans are backed by the US Government; if a student doesn’t pay their loans, the government pays the lender and then obtains payment from the student. Private loans, such as credit cards, car loans, mortgages, etc. are backed by an individual’s creditworthiness and collateral. However, whenever you consolidate Federal student loans it will improve your credit ranking, and furthermore, you may be able to qualify for better interest rates on your private loans when you refinance them.
Who is eligible for student loan consolidation?
You must have at least $10,000 in outstanding Federal Reserve Bank New York Student Loan. You do not need to be employed to consolidate your loans. You do not need to have any form of collateral or a cosigner of any kind.