Education Consolidation Loans

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Education Consolidation Loans
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• The federal consolidation loan is provided to the
  students from the school level through private
  and government agencies to meet their education
  expenses.

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• The educational loans are a federal loan which is
  made available to the borrower and may come from
  one or two sources. This government loan is made
  by the department of education in the US. As a
  borrower you will have to repay the consolidation
  loan amount to the department of education in the
  US.

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• This consolidation education loan is also
  provided to the borrowers through the federal
  family Education Loan Eligibility or the FFEL.
  However, the FFEL funding comes from various
  private lenders like private banks and credit
  unions, so they are supported and subsidized by
  the department of education in the US. The
  borrower has to repay the consolidation loan
  amount to the private lender, that provides
  funding or to some designated agency.

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• Whether the borrower gets direct educational
  consolidation loan directly or from the FFEL, it
  depends entirely on the choice of the borrower.
  But the loan amounts, benefits and interest rates
  remains the same throughout. The general
  requirement of the consolidation loans can be
  obtained from the education department of the US
  government.

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• Generally most of the student federal loans are
  eligible for consolidation, which includes
  unsubsidized and subsidized direct and FFEL or
  the Federal family education Stafford loans, FFEL
  plus and direct, federal nursing, federal Perkins
  and health education assistance loans. However,
  the private educational loans do not fall under
  the consolidation loans.

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• A borrower is eligible to get the FFEL
  consolidation loan, which is a government loan,
  during the grace period, once the borrower has
  entered the repayment phase or forbearance or
  during the periods of deferment. The direct
  educational consolidation loan is also available
  to those who are still in school. The default
  borrowers are eligible for this loan once they
  meet the requirements. There is no upper limit of
  the loan amount. The interest does not exceed
  8.25 percent. The weighted average rates of
  interest on this Government Loans are
  consolidated and are rounded to the nearest
  one-eighth of one percent. The rate of interest
  is currently fixed throughout the loan term.

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• You can get the estimate of the interest rate by
  checking it on the online calculator available on
  the US department of education website. However,
  the length of loan term is set to a maximum of 30
  years. You can repay the educational
  consolidation loans on monthly or quarter basis,
  which ever suits you best. There is no additional
  fee or pre-payment penalty on the loan amount.

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