There are a variety of student education loans and could be categorized into two primary types: Federal Student Education Loans and Student Education Loans. The Government student education loans are disbursed with the US Department of Education’s Federal Student Aid programs, and therefore are the simplest to acquire. The non-public student education loans are acquired from standard lenders and banks, amongst others. You should use both kinds of loans to finance your education, but with regards to your Education Loan Debt Consolidation Reduction, never combine the 2 together.
Begin by consolidating your Federal student education loans first. The advantages of education loan debt consolidation reduction of the Federal loans is the fact that:
o The interest rate is gloomier
o It cuts down on your monthly obligations because the term of loan repayment is elevated to 3 decades, with respect to the loan balance
o The repayment is consolidated one check monthly payment.
You’re qualified to choose your education loan debt consolidation reduction of the Federal loans when you’re not signed up for school any more you’re positively repaying the loan or have been in your six-month publish-graduate elegance period you’ve got a minimum amount borrowed of $10,000.
The reasons you should not combine the government and loans during education loan debt consolidation reduction would be that the interest on Federal loans is tax deductible you are able to defer payments when you are to school and also the loan is pardoned for certain kinds of service. Private students financing does not have these advantages because they are treated just like normal loans. Mixing in the Federal and loans during education loan debt consolidation reduction enables you to lose all the advantages of the government loans consolidation.