Loan Referrals

7/28/2007

Consolidating your student loans - salliemae

Consolidating your student loans

Should you consolidate student loans? If you're looking for a more convenient way to repay your student loans and possibly lower your monthly payments, consider student loan consolidation.

Student loan consolidation

Student loan consolidation is a way to bundle your student loans into one new consolidation loan, reducing the number of monthly bills and possibly lowering your monthly payment. Plus, in the case of federal student loans, consolidation gives you the opportunity to lock in a low fixed interest rate.

Which consolidation loan is right for you? You may be eligible for both.

Federal student loan consolidation

You may be eligible for federal student loan consolidation if you have:

  • Stafford, PLUS, Perkins, HEAL, or other federal student loans
  • At least $5,000 in federal education loans
  • Any federal education loans in grace, repayment, deferment, or forbearance (and not in default)

Private student loan consolidation

You may be eligible for private student loan consolidation if you have:

  • Private student loans from banks, credit unions, or schools
  • At least $5,000 in private student loans
  • Good credit or a cosigner with good credit
  • Graduated from or will be graduating from a postsecondary program of study

Benefits of consolidating with Sallie Mae

Some benefits of consolidating your federal and private student loans with Sallie Mae include:

  • Convenience of one monthly payment
  • Possibility of lowering your monthly payment
  • Consolidating with a name you know and trust—Sallie Mae
  • Valuable borrower benefits that can save you hundreds, even thousands of dollars over the life of your loan

Once you consolidate your loans, you can choose the repayment plan that suits your budget: standard (monthly payment is fixed over the life of your loan), graduated, extended, or income-sensitive.

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