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Details of student loans that can be consolidated

Date: Wed, 08/31/2005 - 01:48
Submitted by samuel on Wed, 08/31/2005 - 01:48
Posts: 9
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Hi forum members,

Recently I was working on an article on types of student loan that can be consoliudated through debt consolidation programs. Thought of sharing the article with the community. I have got a lot of help from this forum and now i want to give some of it back.
Hopefully the community will benefit from the information given below.

[color=darkblue]Types of Student loans[/color]

What are the types of Student Loans that can be consolidated?

It is not very easy to consolidate student loans. Not all student loans can be consolidated. Only the following types of loans can be consolidated:


  • Direct Subsidized and Unsubsidized Loans
  • Federal Subsidized and Unsubsidized Federal Stafford Loans
  • Direct PLUS Loans and Federal PLUS Loans
  • Direct Consolidation Loans and Federal Consolidation Loans
  • Guaranteed Student Loans
  • Federal Insured Student Loans
  • Federal Supplemental Loans for Students
  • Auxiliary Loans to Assist Students
  • Federal Perkins Loans
  • National Direct Student Loans
  • National Defense Student Loans
  • Health Education Assistance Loans
  • Health Professions Student Loans
  • Loans for Disadvantaged Students
  • Nursing Student Loans


If the students have opted for the above mentioned loans they are eligible to enroll in a debt consolidation program. The debt consolidation process is very useful for students suffering from debts. Not only is their principal loan amount reduced but they can also avail the flexibility of paying back the loan in easy monthly installments. All the above mentioned loans can be consolidated.

Hope this helps.

Thanks
Sam


Thanks sam. You did a great job!

Youngsters have to struggle a lot due to their debt problem. Such information can show them the right way. In case of multiple student loans, consolidation can be a good choice.

Keep on helping us.

learner


Submitted by on Thu, 09/01/2005 - 23:56

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I have Direct PLUS Loans, Federal Subsidized Loan and Federal Perkins Loans. If I consolidate what will be the rate of interest? How much can I save with consolidation?


Submitted by on Mon, 10/17/2005 - 14:45

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Emmie,

You can work it out by yourself. The rate of interest of a consolidation loan is determined by calculating the weighted average of the loans to be consolidated. Now how to calculate the weighted average?

First, multiply each loan amount with respective interest rate to get weight factor per loan.

Secondly add all per loan weight factors to get total weight factor.

Thirdly divide total weight factor by total loan amount. This is what we call average weight factor.

Now round up the figure to the next one-eighth of one percent. Compare this figure with 8.25% and the lowest one is going to be counted for you. Consolidation loan interest cannot exceed than 8.25%

Some loan holders can offer some extra benefits, so it's better to contact consolidation companies to know the effective rate of interest for you.

You can take a professional counseling by filling out the free signup form of this site also.


Submitted by 4u.bryan on Mon, 10/17/2005 - 15:05

4u.bryan

( Posts: 819 | Credits: )