Consolidating Federal Student Loans
After you graduate from college it is a very important step to consider is consolidating federal student loans. Most Americans are forced to take out federal loans when applying to college, because they just cant afford tuition on their own.
College costs have been increasing over the years in order to graduate. Its important to know how to handle your debt when you leave college and enter the real world. Educate yourself and read about what you can do to help yourself.
There are two types of student loans. One is a federal student loan and the other is a private student loan. Your ultimate goal would be to consolidate your loans after graduation. Federal student loans have more benefits compared to private loans.
One such advantage is that the interest paid against the loan is tax deductible which is a big bonus. Another advantage is that the loan can on occasion be forgiven for some types of services. The last big advantage of federal student loans is that you can in some circumstances defer payments due on the federal loan if and when you decide to return to school later on.
Private student loans are regular loans that you have to pay back like any other loan and do not have the same benefits of federal loans. Its important not to consolidate both federal and private loans together because you will lose out on the benefits federal loans have to offer.
Again, always consolidate your private student loans separately from your federal student loans, so you can take advantage of the many benefits being offered.
For eligibility on consolidating federal student loans, there are a few factors to be considered. You are eligible to consolidate you federal student loans if you are no longer enrolled in school, considering you have graduated or enrolled in less than half time in classes.
To be eligible for federal student loan consolidation you must still be inside the grace period of the loan or be actively repaying the loan. You can find a lot more information on this topic, so make sure to research it well.
Before you take action to consolidate your student loan be sure to research the benefits of federal student loan consolidation, and federal student loan repayment