Aim For A Federal Student Loan

Aim For A Federal Student Loan by Kurt Naulaerts

Students in their graduating year are able to start the process of consolidating their federal student loans. This can actually lower the debt before you have to start making payments. There are many benefits to consolidating your federal student loans. Consolidation can drastically reduce your monthly payment amount. If consolidation is possible it may be a quicker way to being debt free. Many students who receive the right consolidation loan have reported paying off their student loans as early as 48 months.

Federal student loans can be used for almost any student expense, room and board, supplies, books and transportation. Federal student loan consolidation allows students to combine all student loans into one payment. Federal student loans have more options when it comes to repayment. There is also a built in grace period following graduation. This is to allow the student to obtain employment before feeling the pressure of loan repayments. Some loans have a built in grace period of 6 months, but this can vary from loan to loan.

Federal student loan borrowing has increased over the last 10 years as more middle and upper income students began applying. These students are becoming more and more eligible every year. Every student should apply for a federal student loan regardless of the household income.

After graduating students should make it a priority to consolidate and start to repay their federal student loan. Federal student loans should be paid before any private loans as the rates begin to go up every Jul 1st after the initial grace period. The rates on every federal student loan received has increased dramatically since 2002.

Students who do not receive enough of a federal student loan for a full year of school are urged to go see their financial aid department at their University or College. These people are experts with many years of experience dealing with failed student loan applications and they might be willing to help. The last resort in financing your education should be a private student loan. Private loans can be at higher interest rates and there is no grace period after graduating before repayment begins. The one good thing about private student loans is there is still the option to consolidate before graduating. This still allows the student to make only one monthly payment over a renegotiated term of up to 30 years. This can realistically turn the monthly loan payment into a very low amount but with the term of the low spread out over such a long period some students may take a lifetime to pay off their student loans.



We have been involved with helping students obtain loans for over 25 years. Our knowledge has helped countless students obtain a federal student loan. To read more about the resources we recommend please visit our new and informative website:
http://www.studentloans-answers.com

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