September 11, 2010 Loan Consolidation – What You Need to Know
The idea of a consolidation loan is for you to reduce your payment amount and possibly end up with a lower interest rate into one single advance. The student nor the parents or co-signor are required to have a credit check done. The time to consolidate is during the loan tenure or within the six month grace period.
The program allows for the extension of the term of repayment, thereby reducing the monthly payment, which will enable the student to more easily repay the loan back. This is for federal loans only and doesn’t apply for those loans granted by state institutions. Previously these consolidated loans were required to have a co-signor, but are not currently required.
You can apply online for a consolidation loan. However, be aware that many private lenders charge higher interest rates so take the time to investigate the cost of the loan prior to signing up. There are a variety of plans available with no co signor required.
You can get a federal consolidation loan from a federal program. If you have a lower income, you will provided a lower interest rate, easy repayment and installment program.
Goal Financial, originated of $9 billion government guaranteed student loans just recently purchased over $600,000 of Federal
Government guaranteed student loans. This is part of a new strategy which will focus on acquiring Federal Family Education loans (FFEL)
which will in turn allow for more availability of funds for student loans and consolidations.