Consolidate Student Loans

To consolidate student loans, you need to obtain one large loan that covers the sum of your current small loans from different lenders. Preferably the lower the interest rate the better. Obtaining a student loan is a way of investing in your future. The government will generally help by offering grants but you have to meet a strict criteria to qualify for a federal student loans. As a result private student loans from banks and other financial institutions have become very important as more often than not, it can be the only available credit available to you in order to make it through college.

This page offers the basics of student loans and points you to other relevant resources.

To consolidate with the following benefits:

• Reduce Payments up to 60%
• No Credit Checks
• Lower Your Rate
• No Pre-Payment penalties

Click here to consolidate student loans

To obtain a government student loan the first step is to fill in a Free Application for Federal Student Aid (FAFSA) and submit it before the deadline, bearing in mind that state deadlines vary from state to state. After submission changes can be made before the deadline. The FAFSA is need-based and as such not everyone will qualify. However, completing is important for nearly every college student as the submitted information is used to determine not only which families qualify for financial aid, but also to determine eligibility for particular programs and to estimate the family's own expected contribution to a student's education. The easiest way is to complete the FAFSA form online.

Other Well-Known Student Loans Or Aid

Perkins Loans - This is the best choice as it has low interest rates. It is available through schools for students in need. To be eligible you must be a full or part-time student, graduate or undergraduate and you must also be a US citizen with permanent residence in the USA. It is not easy to obtain this loan, as you must demonstrate a financial need as compared to other students who may apply.  The liftime loan amount is usually up to $20,000 for undergraduate and $40,000 distributed over the number of years in college. for a graduate. The benefits include:

• No credit check needed
• Flexible repayment options
• A fixed 5% interest rate
• Interest is subsidized while you’re in school
• No prepayment penalty

To apply, you must complete the FAFSA form mentioned above

Stafford Loans - These are easier to qualify for Stafford loans and if you demonstrate the need, your interest rate may be subsidized. Like the Perkins loans, you must be a registered full or part time student in an eligible institution, be a US citizen with permanent residence. These conditions apply:

• You will pay a fee (but it may be covered by your lender),  
• you must repay the loan
• Loans issued after July 2006 have a fixed 6.8% APR
• Interest may be capitalized (added to the back of the loan) if you decide not to pay while in school

Some of the benefits of Stafford loans are that no credit check will be done, you will hav flexible repayment options, there will be no prepayment penalty and in some cases loan forgiveness for some teachers. Loan amounts range from $2,625 to $18,500.

To apply, you must complete the FAFSA form mentioned above

Parent PLUS  Loans - These are available through US Department of Education funding programs. The unique benefit of these loans are that you can borrow a large amount depending on your circumstances. To qualify you must be a dependent, be at least a part-time student and / or undergraduate. You must also be a US citizen with permanent residence. The following conditions must be fufilled if you wish to apply for a Parent PLUS loan:

• Parents must pass a credit check
• You may pay a fee of up to 4%
• You must repay the loan
• Loans issued after July 2006 have a fixed 8.5% APR
• Interest will not be subsidized
• Repayment begins 60 days after the loan is made – no grace period

To apply, secure an application form from your Financial Aid Office and complete it.

Payment Deferment

After you finish school, you are expected to make repayment towards your student loan. However, you can defer payments if the relevant conditions are met. For instance, if you end up in the desparate financial situation, you can defer payments without your credit history being affected.  In addtion, you can apply for an in-school deferment without any penalties. You can also consider consolidating student loans debt if you have borrowed several loans over during your college years.

Additional Information

The best place to go to is the Financial Aid Office on your campus.

You can also visit these sites:

Federal Student Loan / Aid Page