Student Loan Consolidation is the consolidation of many student loans
into one that can allow for a lower monthly payment. Not everyone will
find a student loan consolidation loan that works for them. When looking
for a student loan consolidation take your time and do some diligent
research about what is available and how it will affect you financially.
Some consolidation loans may be at a higher interest rate and you may
have to make payments for a longer term.
There are a zillion sites online that offer student loan consolidation,
but, really there are only a few real direct lenders than can help you.
Some of these sites online just want you to sign up and then they sell
your information as a lead to a direct lender and they get paid. Try to
find the direct lenders yourself and avoid these middle men sites and
deal with the funding source.
The government has some programs that could be useful when you are
looking for a student loan consolidation loan. You will want to visit
LoanConsolidation.ed.gov for further information. These are direct
lenders and that is what you are wanting and looking for. Stay away from
the lead collector sites and the middle men websites. It is great and
easy to borrow money, but, we find that it is harder to pay it back.
Take you time and find the right consolidation loan just for you.
Some of the information that you will need to provide when applying for
a student loan consolidation will be your current loan balances and the
names of your lenders. If you apply for a student loan consolidation
loan you will need to fill out an application, promissory note, and
other documentation that is asked for and required for a funding source
to make your loan.
So gather all of your loan records, account statements, and bills so
that you have on hand all the information you need to complete the
application and promissory note, and related forms. To find the
information you need to answer questions concerning the loans you want
to consolidate, you can use the following resources:
your last monthly billing statement(s)
your quarterly interest statement(s) or annual statement(s)
your coupon book(s)
the Internet site of your loan holder(s) or servicer(s)
your school's financial aid office, if you are currently in school
Important Note: In the Loan Information (Education Loan Indebtedness)
sections of the Consolidation application, you will be asked about your
education loans. List all your education loans, indicating those you
want to consolidate (including your Direct Loans) and those you do not
want to consolidate. Education loans that are not included in the
consolidation may be considered in determining a borrower's maximum
repayment period under the Standard and Graduated Repayment Plans.
Federal Student Aid PIN
If you do not already have one, Apply for a PIN from the U.S. Department
of Education Federal Student Aid Web site. The PIN will be required to
e-sign and submit your application online, which is the most efficient
method for submission. Alternatively, you can print and mail your
Before you complete the online combined application and promissory note
and select a repayment plan, you can estimate what your monthly payments
would be under each of the four available repayment plans using the
online calculator on the U.S. Department of Education's Loan
Consolidation Web page. After you have read the overview of repayment
plan options, be sure to also read through the Consolidation Package you
are ready to complete the online combined application and promissory