Although many students are able to qualify for a variety of scholarships and grants, they typically are not enough to cover the entire cost of a college education. As education costs continue to rise, more and more student find themselves in need of additional funding to help cover all their expenses. Because they are widely available to most anyone who is pursuing a college degree, federal student loans are very common. Although they are easy to obtain, federal loans do have their limitations. Most federal loans only allow the student to borrow a set amount of money even if their expenses are higher. As a result, many individuals end up taking out multiple loans. Doing so can make getting an education possible, but it can also make repayment difficult.
If you had to take out multiple loans in order to pay for your education, you will be responsible for making multiple payments each month. Repaying multiple loans can be a burden for numerous reasons. Paying multiple loans is expensive, and keeping track of multiple due dates is challenging. By consolidating your federal student loans, however, you can greatly reduce the burden.
By consolidating your federal student loans, you are essentially turning several small loans into one larger loan. Often the larger loan has a longer repayment term that makes your monthly payment lower than the sum of the individual payments you were originally responsible for. In addition to being more affordable for most recent graduates, making just one payment is also much more convenient.
Consolidating your federal student loans is simple. In many cases, you may not even need to talk to a loan adviser. If you are able to manage your loans online directly through your lender, you may be able to apply for a consolidation directly from your online account. In this case, there should be a link that says “Manage Your Account” or something similar. If you are unable to apply directly from your online loan account, you can visithttp://loanconsolidation.ed.gov/. There you will be able to find additional information including resources to help determine whether or not consolidation is right for you. You will also be able to learn more about additional options including income sensitive consolidation. You can apply for consolidation directly on the website or by calling 1-800-557-7392. This number can also be used to contact the Department of Education in the event that you have any questions or concerns regarding your federal student loans. The website also has a printable form that you can print, fill out, and mail in. Once you have applied, you will be able to check the status of your application here as well.
As with any loan, be sure to carefully read the terms and conditions prior to applying, and ask questions about anything you don’t understand. Before you start filling out your application, it is a good idea to gather all the information you will need. Make sure you have recent statements from all your federal loans. You will also need your Federal Student Aid PIN if you want to sign your documents electronically. If you do not have a PIN, you can apply for one athttp://www.pin.ed.gov/.
Thanks to federal consolidation loans, most people are able to consolidate their student loans quickly and easily. In doing so, you can make paying off your debt much more manageable and have more money left over at the end of every month.
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