Student loan consolidation info that you must know

Student loan consolidation info is that which helps you understand the concept of the loan. It is the combination of two or more student loans into one loan with one monthly repayment, which is usually lower than the sum-total of repayments that would have to be made if the loans were not consolidated.

Federal student loans are easier to be consolidated because they are backed by federal government guarantee. Private student loans can also be consolidated though it would involve investigation into the applicant’s credit history and creditworthiness. Regardless of whether your student loan is federal or private, consolidation is a very good option that you must avail of.

Know and understand the following student loan consolidation info:

1. Are you eligible for loan forgiveness? The benefit of forgiveness is extended if one or more of the following are applicable to you:

• Engaged in volunteer work: Service with AmeriCorps for a period of 12 months fetches you USD 7,400 in stipends and USD 4,725 towards loan pay-off. These figures may change from time to time; so it’s advisable to check it out on 1-800-942-2677. If you are volunteering with Service to America (VISTA), you can earn up to USD 4,725 toward loan payoff. Call 1-800-942-2677 or 1-202-606-5000.
• Military service: You are entitled to a debt clearing allowance of USD 10,000 if you are a member of the US armed forces.
• Teaching in specified communities: If you are, or intend to be, a teacher, do look at the list of loan forgiveness programs maintained by the American Federation of Teachers. Your local school board will also tell you of the specific schools where teachers become eligible qualify for loan forgiveness. Generally, the schools where teachers enjoy loan forgiveness are those that serve in public interest and where salaries are lower than in the regular education market.
• Engaged in clinical medical research: If you are a healthcare professional engaged in clinical medical research, you are probably eligible for the US National Institutes of Health's NIH Loan Repayment Programs that repay up to USD 35,000 a year of student loan debt.
• Legal practice in specified communities: If you are a lawyer, call Equal Justice Works on telephone 1-202-466-3686 or fax 1-202-429-9766 to know whether the community you serve entitles you to loan forgiveness programs.

2. Once you know your eligibility for loan forgiveness, you can calculate the balance loan that you need to repay. If the balance is still considerable, you must opt for consolidation.

3. Federal student loans are easy to consolidate because they are guaranteed by the federal government. Credit history or creditworthiness are minor issues here because of the federal guarantee.

4. Federal student loans cannot be clubbed with other types of loans, federal or private, for the purpose of student loan consolidation.

5. Private student loans can be combined with other loans such as credit cards, mortgage, car, and so on, but at the discretion of the lender/consolidator.

6. Federal loan consolidation takes around two months. Private loans can be consolidated quicker, but your credit history and creditworthiness will be important criteria.

7. Applying for consolidation does not mean that consolidation has been done. So, don’t stop paying your monthly repayments on each loan until you are notified of their consolidation.

8. You don’t need to pay for federal student loan consolidation. Whether you have to pay, or not, for private student loan consolidation, depends on your agreement with the consolidator.

9. Consolidation should result in a substantial saving. Conclusion: Finally, remember that student loan consolidation is a specialist business. Don’t entrust yourself for completion of all formalities. Find a few established loan consolidators from the Internet. Apply to at least three consolidators, and compare their offers. Go for the best.