Student loan consolidation program is a re-financing method that combines all the loans into one. This consolidation program does not require any co-signers or credit check on students and their parents. The consolidation is also possible during the period of loan repayment and the six month validity of grace period.
This scheme allows the student to repay on a longer term with lower repayment amount. This is great relief as they do not take away all the money for repayment but allow the loaner to spend some amount for his daily expenses. Moreover the scheme permits for pre mature repayment without any additional penalty. It has fixed interest rate on student loan consolidation. The consolidation provides the opportunity to students to choose the affordable re-payment plan according to their monthly earnings.
This is a single door repayment plan that consolidates all the federal loans into one. As a matter of fact study loans are necessary to avail quality education. Many students fail to afford such big amount. At present these loans are available without co-signer unlike past restriction of the requirement of co-signer. Student loan with no co-signer is available online. This requires you to fulfill the required information details and the borrowed money is deposited in your account. Private borrowings are also available for study but their interest is higher than the federal loans.
The student loan with no co-signer allows you to repay according to the plan you choose. The interest rates are lower than other private loans. This consolidation facility is available up to 25 years and is easier, as you can avail the service of customer care, which is available 24 hours. Students coming from a lesser income group family get it on easier terms where for a private lending such as bank loans you need to have a good credit history.
Student loan consolidation is essential when you have taken loan from various sources to fund your educational need. Different lenders have different interest rates and repayment may occur at different day of the month. This put a student is stress and he devotes much of his time thinking how to repay these loans on different days, than concentrate on his studies or job. Therefore student loan consolidation program is the best way to repay all the loans by getting refinance from a single source. So you have to pay once a month to single financier.