- Student Finances
- Student Loans
- Specialty Scholarships
Federal Consolidation Loans
The Federal Consolidation Loans come under the Federal Direct Student Loan Program of US, allowing students to consolidate one or more student loans like Stafford Loans, PLUS Loans and Federal Perkins into one loan with a new repayment schedule. The main thing about these loans is that they have a fixed interest rate for the life of the loan.
Besides, these also have longer terms than other loans. For example, there are 10–30 years of terms that borrowers can select, where in the monthly repayments are lower, but if talk about the total amount paid over the term is quite higher than would be paid on other loans.
Now have a look at the major benefits of Federal Consolidation Loans, which include :
- Lower monthly payments
- No prepayment penalties
- A fixed interest rate
- One bill, one lender
- No required minimum balance per federal rules
- No limit to the number of loans that may be consolidated