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Student Loan Consolidation
Benefits of Federal Student Loan Consolidation
A Federal Consolidation Loan allows you to combine
one or more of your federal education loans into a new loan that offers
you several advantages.
Lower Interest Rate For In-School and In-Grace
Consolidation
Borrowers who have a Federal Loan in an in-school
or grace period at the time we receive their consolidation application,
may benefit from a lower fixed interest rate on the new Federal Consolidation
Loan. The difference between a borrower's interest rate during their in-school
and/or grace period and during their repayment period can be as high as
0.6%.
Lower Interest Rate for Auto-Debit and On-Time
Payment
Receive 0.25% off when you enroll in automatic
checking account withdrawal. Add another 1.0% off after
One Lender and One Monthly Payment
With only one lender and one monthly bill, you
will find it is easier to manage your debt. You will have only one lender,
the Student Loan Network, for all loans included in your Federal Consolidation
Loan.
Flexible Repayment Options
You can choose from different plans to repay your
Federal Consolidation Loan. These plans are flexible to meet the different
needs of borrowers. With a Federal Consolidation Loan, you can switch repayment
plans at anytime.
Grace Period
If you consolidate while in-school, you may receive
a 6-month grace period before repayment begins.
No Fees
Consolidation is free.
Varied Deferment Options
Federal Consolidation Loans offer several deferment
options. If you have exhausted the deferment options on your current Federal
education loans, a Federal Consolidation Loan could renew those deferment
options. In addition, you may be eligible for additional deferment options
if you have an outstanding balance on an FFEL made before July 1, 1993,
when you obtain your first Federal Loan.
Reduced Monthly Payments
A Federal Consolidation Loan may lower your monthly
payment. The minimum monthly payment on a Federal Consolidation Loan may
be lower than the payments on your federal education loans.
Retention of Subsidy Benefits
You will keep any subsidies on your old loans.
Source: US Department of Education and StudentLoanConsolidator.com
Consolidate
your Student loans and lock into todays low interest rate. You could
save up to 60% on your monthly payment and make only one low payment!
Banks
> Loans > Student
Loans > Consolidation
of Student Loans > Benefits of Federal
Student Loan Consolidation