Student Loan Debt Consolidation

There are debt consolidation loans for the students by which they can consolidate their different loans under one lender. Such educational loans can thus be used by the students who have taken multiple loans from different lenders for their studies and are not able to manage the loan repayment. By taking such loans the students can avoid the conditions of default and prevent themselves from the risk of making their credit history bad.

Merits of loan debt consolidation
The consolidation of your loan can give you many benefits some of them are:

1. It makes your repayment a lot easier.
2. The process gives you the advantage of consolidating you federal as well as private loans under one private bank or financial company.
3. After consolidation you are liable to one lender and so the debt management is easier as you don't have to run to different lenders and pay different lenders at different times in a month or a quarter.
4. The consolidation lowers you interest that you pay.
5. The interest gives you the tax advantage as it is considered tax deductable.
6. The financial companies do not charge any fees for the student loan debt consolidation.
7. The amount that you pay in a month is small.
8. The term of repayment can be adjusted within ten to thirty years according to your financial conditions.

Who are qualified for student loan debt consolidation?

Any facility comes with conditions and this facility to consolidate your debt also requires you to approve to certain conditions. You are qualified for the loan if:

1. You are in the grace period.
2. If you have no previous history of debt consolidation.
3. You are out of the school since three to six months.
4. If you have applied for the deferment period.

There are two options for consolidating your debts:

1. Federal consolidation of the loan
2. Approach private companies to consolidate your debt

If you are looking for federal consolidation loan then you should have at least one outstanding federal loan in the list of your debt loans. If you have such then you are qualified. The loan amount will then be consolidated for you and the interest that you will have to pay them will be calculated by averaging the interest rates of your outstanding debts. The average interest thus is applied to the loan that is sanctioned and it remains fixed for the whole term of loan till you repay the whole of it.
If you are approaching private companies for debt consolidation then the interest on loan will depend on the prevailing rates in the market. The company will also look into your or your parent credit history.