What is Federal College Debt Consolidation?

With the cost of living rising in cities such as Boston and the cost of a good college education rising much faster than inflation, the Federal government has created a program that can assist students in repaying their college debt as soon as they can and in an affordable fashion.

Many students opt for Federal student loans because they tend to have a lower interest rate.  Each semester and each year, a student may need to obtain a federal student loan to assist in paying for their education, which means that these same students are most likely going to have several federal student loans come due after graduation.

Instead of paying on multiple federal student loans, all of which may have varying interest rates and due dates, you can consolidate all of your college debt through college debt consolidation.  College debt consolidation is set up as a program through the federal government for federal student loans. The college debt consolidation pays back some or all of your loans and then you have just one sum loan to pay on instead of several different federal student loans.  

Students that are interested in college debt consolidation for their student loans do have to be eligible and meet some minimum requirements:

• Students must have graduated, left school or currently attending either full or part-time.
• Your loans are in need of repayment, deferment, forbearance or in the six month grace period.

There are several federal student loans that qualify for the federal college debt consolidation program including:

• Federal and Federal Direct Stafford Loans, either subsidized or unsubsidized
• Federal and Federal Direct PLUS
• Supplementary Loans for Students
• Federal Perkins
• Federal Nursing Student Loans
• Federal Health Education Assistance Loan
• Federal Health Professional Student Loans
• Health Professionals Student Loans
• Loans for Disadvantaged Students
• Federal Insured Students Loans
• Federal Consolidation Loans
• Federal Direct Consolidation Loans

All of these loans are commonly provided to students through the school's Financial Aid Office as well as private lenders.  

If you're a student at the University of Boston, Boston College or another college and you have already begun accumulating student loans, now is the time to begin considering college debt consolidation so that you can have a good jump on tackling your college debt before it tackles you.  You will find you are in a better place financially and the consistent payments on the loan can even help to increase your credit.

Find more articles tagged with: