Who is Eligible for Student Loan Consolidation?

If you have various student loans, you might be wondering if you can consolidate them. This means combining your loans so that you only have to make one monthly payment. Besides the convenience, you can also lock in a fixed interest rate so that your payments won't go up over time. And unlike traditional debt consolidation, student loan consolidation is right for nearly everyone.

The only hard and fast requirement of student loan consolidation is that you must have at least $10,000 in debt. Most college students can meet this requirement handily, fortunately (or unfortunately!) Unlike many traditional debt consolidation programs, you are not taking out a loan. This means that you don't need any collateral, like home equity. Also, if you have a low credit score, you will not need a co-signer. You don't even need to be employed. Student loan consolidation is much easier to do, so it behooves almost any student to take advantage.

The Differences and Perks of Student Loan Consolidation

One of the biggest bonuses to student loan consolidation is that there is no maximum available amount. When you apply for a debt consolidation loan, you will be approved for a certain amount of money, based on your credit worthiness and your ability to pay back the loan. With student loan consolidation, you can consolidate all your loans, no matter what. Graduates of medical schools or law school who have student loan debts in the hundreds of thousands can still consolidate their loans.

You also should be aware that the interest that you pay on your student loans may be tax deductible. Make sure you save your loan coupon receipts and ask your accountant about deducting the interest. Every little bit helps when you're paying Uncle Sam!

Safety Nets for Student Loan Consolidation

Another perk of student loan consolidation is that, unlike a traditional loan, there are safety nets that allow students some flexibility. You may have heard of deferment, the ability to stop paying your student loans for a while in the event of a job loss or other emergency. The good news is that even consolidated loans are able to be deferred. Just contact your lender if you have a need to defer, and inquire about the process.

Also good to know is that, in the event of your death, your student loans are discharged. It isn't a fun topic to think about, but you can have the peace of mind of knowing that if something did happen to you, your spouse or children would not have to continue paying your student loans. Try getting that deal from a conventional loan!

Be aware that the rules are a little different if you are still attending school, or if you have Perkins loans. Do some homework and make sure that you won't lose any benefits. A good place to find information is your school's financial aid office. They can offer unbiased advice on your best plan of attack. Remember that consolidating your student loan debt is easy and it's right for nearly every student. Don't wait any longer to consolidate. You can save both time and money.

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