Steps for Choosing the Best Student Loan Debt Consolidation Companies

Student Loan Debt Consolidation

Consolidating loans will put together all your parents and students loans into one big loan from one lender. This amount will be used to repay your due amount of your loans. You can consolidate most of the federal loans that you have taken along with FFELP, Perkins, HEAL, Direct loans, Health Professional Student Loans, NSL, FISL and Guaranteed Student Loans. There are also lenders for private education loan; they give you private student loan debt consolidation. Your college may not be enrolled in Direct Loan Program but you can still apply for federal direct debt consolidation loans with the US Department of Education.

There are no fees or charges for the consolidating process thus it can be called free debt consolidation quote. Apart from the raised interest rate there are no other costs that you will have to bear. Never pay any fees in advance for getting a federal debt consolidation. It is for the same reason that there are no fees to consolidate a loan. If someone asks for it though, then be sure you are in for a scam.

Affordable rates School Loan Consolidation offer to Private & Federal Student to consolidate student loans OR College loans.

School loan consolidation can be availed by students and parents as well. Be careful that both of them cannot be combined together for one consolidation. It can only be done separately. Even married students as a couple cannot apply for a consolidation loan together anymore. This provision has been retracted since July 1, 2006.

If you are student, you can consolidate your loan only during your grace period or once you have to start repaying your loan. Students are no longer allowed to consolidate their loans while they are still studying. On the contrary parents can consolidate their PLUS loans at any given time they want. Another change made in consolidation norms is that you can consolidate with any lender of your choice. You no longer need to stick to your original lender. This will give chance to people to shop around and look for the best for themselves.

You can consolidate federal education loans as well. You can also consolidate one single loan at one time. There are stricter laws though for consolidating already consolidated loan. You can consolidate a consolidated loan only once. Since the year 2006 you have to consolidate more loans in order to consolidate an already consolidated loan. You may consolidate two consolidated loans in one as well. There is no way though to consolidate by itself.