"Consolidate Before Its too Late" - "Student Loan Rates Set to Increase- Consolidate Now!" - "Reduce Your Monthly Payments" - "Record Low Rates Won't Last- Consolidate Today!"

Student Loan Consolidation Incentive

To get a college or university degree is not possible without having lots of finance. Student Loan Consolidation Incentive can be the best bet to think of, if you are also planning of getting some financial help without overburdening yourself. In case you are also one among the many students who to afford the increasing cost of studies has taken more than one loans, then student loan consolidation will surely help you to find your way to come out of the burdens of finance on your shoulders. You can make these entire loans merge into one big loan and then pay only one monthly installment with new and low interest rate. By this way you can save much more. You just need to lock the interest rate while consolidating your loans, so that you will never be affected by the fluctuating of interest rates.

Saturday, April 12, 2008

Which Student Loans Can be Consolidated?

Any federal education loan can be consolidated. You can even consolidate even a single loan. There are, however, a few restrictions on consolidating a consolidation loan. You can consolidate a consolidation loan only once. In order to reconsolidate an existing consolidation loan, you must add loans that were not previously consolidated to the consolidation loan. You can also consolidate two consolidation loans together. But you cannot consolidate a single consolidation loan by itself. These restrictions have been in effect since early 2006.

Note that when you reconsolidate a consolidation loan, it does not relock the rates on the consolidation loan. The consolidation loan is treated as a fixed rate loan within the weighted average interest rate formula used to calculate the interest rate on the new consolidation loan. Consolidation does not pierce the veil on previous consolidations.

The new restrictions on the consolidation of a consolidation loan limit your ability to use it to the consolidation lender. Generally you will consolidate your loans once, towards the end of the grace period or after the repayment of the loans, and then blocked that lender for the duration of the loan. If you want your ability to use the consolidation in the future lenders to switch, you should be one of your loans from the consolidation.
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