What is a Consolidation Loan?
A Consolidation Loan is designed to help student and/or parent borrowers simplify loan repayment by allowing the borrower to combine several types of federal student loans with various repayment schedules into one loan. When consolidating, the lender will take a weighted average of the loan interest rates. So it may or may not beneficial to include all your loans into the consolidated loan. To apply for a consolidation loan, you would contact your lender (or the one that you would like to consolidate with if you have several lenders.) For more info on consolidation go to https://financialaid.arizona.edu/loans/.
A consolidation loan allows you (and your spouse if married or parents if they have a PLUS loan) to combine several types of federal student loans with various repayment schedules into one loan with one monthly repayment. Your payments might be significantly lower than under the 10-year Standard Repayment Plan, and you might receive a lower interest rate than you’re currently paying on one or more of your loans. There are FFELP Consolidation Loans and Direct Consolidation Loans.
A consolidation loan is a loan that can help you take small or large amounts you owe to different people and place the debt obligation with one company, instead of in the hands of the several different lenders. People may choose this option if they’re refinancing a house and want to add the money they owe to various creditors to the money they owe on their home. Alternately, some people contract with a new lender to take out a personal loan, which consolidates all their debts. Sometimes, a consolidation loan can save people money, especially if they get loans at an interest rate lower than the ones on the debts they currently owe. However, this is not always the case. A straightforward consolidation loan that many people undertake is consolidating their student loans after graduating from college. These tend to be very easy to get and they aren’t solely based on creditworthiness. It can be helpful to only make one student loan payment a month, instead of making several payments to diff
A consolidated loan is one that simplifies repayment of federal Stafford and/or Perkins loans by combining all the loans from your educational career into one comprehensive loan. Consolidation can be performed through a previously chosen lender or through a completely different lender, and will have an interest rate with a weighted average of all the loans being consolidated.
A Federal Consolidation Loan is a loan program that allows you to combine all of your previous Federal loans (such as Stafford and Perkins Loans) into one loan. The lender you choose for your consolidation loan pays off loan balances of all loans you want consolidated, then creates a new loan with a new repayment schedule. • There are no credit checks or fees for the consolidation loan • It takes about 6-8 weeks to receive payoff information from your lenders, review your application for completeness, and disburse your new consolidation loan to your lenders.
