Obtaining Federal Government Student Loan Consolidation – Is it Simple?

Having federal government student loans are very common among the Americans nowadays. They need such loans to obtain higher education. When there is an economy downturn, most of them are facing problem in repaying the debt. As a result, consolidating student debt has become one of the alternatives.Here are some simple steps to guide you to consolidate federal student loan.Step 1:
Analyze your individual financial position. It is important for you to evaluate on your own whether you really need consolidation. Find out which types of government study loans you have and all the interest rates involved. Do not combine your spouse’s loan or any private loan. Log in to the website of National Student Loan Data System to find out who your lenders are.Step 2:
The best time to consolidate your loans is during your grace period, i.e. the period right after you graduate from college or university. You will be able to enjoy the lowest interest rate compared with others. Don’t worry if you have missed this period. You can still go ahead with the consolidation but the interest rate would be slightly higher.Step 3:
Do a thorough research on all the lenders in the market who offer to consolidate federal student loans. There are a few types of consolidation programs. For instance, if you plan to work in the public sector, you may try to look for the income contingent repayment plan which is offered by US Department of Education.Step 4:
Do a detailed comparison to find out which type of program that suits your needs most. You are advised to calculate your costs over the long run by comparing the interest rates and repayment periods.The main purpose of obtaining federal student loan consolidation is to assist you to improve your financial situation by reducing your repayment amount up to 50% per month. Isn’t it great?