Knowledge base on federal student loan consolidation services

Non-Student Federal Loan Consolidation

The federal government offers various loans to the citizens of the United States to sustain the rising costs of education and living. Although, there are a large number of lending institutions and financial companies operating in the financial market, the federal government continues to remain the primary source of acquiring loans. There are a variety of student loans backed by the federal government and the most popular loans include Stafford loans, Plus loans, and Perkins loans. Stafford loans are offered to both undergraduates as well as graduate students to facilitate them to enroll themselves in universities and colleges. Many non-students face the difficulty of repaying loans on time, as they may also have to repay other loans in addition to the education loans. They turn to debt consolidation loans as a way out of their immediate woes.

Typically, a credit check is essential for non-students to qualify for a debt consolidation program. However, a credit check is not required for non-students applying through a secondary lender. There are no fees charged to non-students for applying for loan consolidation. Non-students have the option of consolidating their loans under the federal programs such as Federal Family Education Loan Program (FFEL) and the Federal Direct Loan Program or through private lenders. The non-students have to meet the eligibility criteria laid by the respective consolidating companies to qualify for debt consolidation. The private lending institutions may have less rigid eligibility criteria but have higher rates. As a result, many non-students opt for the FFEL and direct loan programs for the countless privileges they offer.

Many financial consultants stress on the importance of considering various factors such as incentives and repayment options offered before selecting a debt consolidation company. Most financial companies provide various incentives to encourage borrowers to make timely payments. This form of arrangement is highly beneficial for both the parties, as the lender is assured of regular payments and the borrowers get discounts on their loans. Apart from providing loans, these companies also provide other consolidating services such as credit counseling, debt management and guidance to select a loan consolidating plan. These loan consolidation plans are devised after a careful analysis of a borrowers paying capacity, the loan amount and the borrowers credit report.

It is crucial for borrowers to verify the credibility of the consolidating company for which they can consult the Better Business Bureau. Many fraudulent companies lure borrowers by promising to provide consolidating services even for a poor credit history. They may charge upfront fees for the services and simply abscond with the money.

Some lenders offer principal reduction incentives as a part of their federal loan consolidation plan. Typically, this reduction is applied to the principal leading to reduction in the loan balance. As a rule, all lending institutions have certain parameters to determine the eligibility of the borrowers for principal reduction. The most common eligibility criteria are the stipulated number of on-time payments. Principal reductions do not affect the interest rate in any way.

Federal loans offer amazing benefits such as tax-deductible interests and deferment, which are continued even after loan consolidation. As a result, financial consultants stress the importance of consolidating federal and private loans separately to avail the federal benefits.

For more articles on Debt Consolidation please go to: http://www.debtconsolidationcenter.net/

Gibran Selman takes care of http://www.debtconsolidationcenter.net/ a website dedicated to gather information, on and off the internet, about debt consolidation and other related subjects.

More Useful Resource and Updates on federal student loan consolidation services

• Student Loans Get Harder To Come By (NBC4 Washington, D.C.)
  College students are feeling the effect of the credit crunch as some private companies stop issuing student loans and others raise interest rates.



• Credit squeeze hits college students, families (MSNBC)
  With the price of some top-priced colleges and universities north of $50,000 a year and lenders cutting back on student loans, financing a college education is getting harder.



• State using fed program to get Utahns student loans (Deseret Morning News)
  Although loans are getting harder to come by, college students in Utah seeking help with rising costs can still safely get money from the state that will be backed by the federal government.



• Survey Reveals One in Four Students Leave College With More Than $5,000 in Credit Card Debt (PR Newswire via Yahoo! Finance)
  For college students, applying for a credit card to get a free t-shirt or other perk may seem harmless enough, but poorly managed finances during those college years can lead to significant debt and a bad credit score years after that t-shirt is worn and discarded.



• CIBC Announces Third Quarter 2008 Results (CNW Group via Yahoo! Finance)
  CIBC announced net income of $71 million for the third quarter ended July 31, 2008, compared with net income of $835 million for the same period last year. Diluted earnings per share were $0.11, compared with diluted EPS of $2.31 a year ago.



• Consider consolidating student loans (The Springfield News-Leader)
  When college alumni show up for homecoming weekend and hold forth about how much better things were when they were in school, it's usually the beer talking. But graduates who boast about the great deals they got on their federal student loans probably aren't exaggerating. As recently as three years ago, savvy borrowers who consolidated their loans were able to lock in rates as low as 2.88 percent.



• Struggling Lenders Continue to Suspend Federal and Private Student Loan Programs (Marketwire via Yahoo! Finance)
  Despite federal legislation passed in May that was designed to help the struggling student loan industry, cash-strapped lenders continue to drop out of the student loan business, leaving families throughout the country scrambling to find a new student loan provider as 6.7 million undergraduates prepare to head back to school.

• Direct Consolidation Loans
  U.S. Department of Education program under which borrowers can apply online for consolidation of their federally-insured student loan debt.



• Student Loan Consolidation Services - EdFed
  Offering federal, private, and student loan consolidation services from EdFed.



• Direct Consolidation Loan - Borrower Services
  Here you will find what borrowers need to know about Direct Consolidation Loans. ... Application and Promissory Note Home Page. Loan Status Look-Up Home Page ...



• SAF Student Services - Loan Consolidation
  You must have at least $7,500 in federal student loan debt to consolidate. ... are the foundation for the quality service we provide to our customers. ...



• Federal Student Loan Debt Consolidation Program Information
  Federal student loan debt consolidation for college students to pay back student ... .com and logo are registered service marks of Student Loan Xpress, Inc. ...