Many Types of Student Loans can be Consolidated
Consolidating your
student loans allows you to group all
of your different types of student loans that you
acquired while in college into one easy to manage loan.
Consolidating student loans can get you interest rates
that are fixed for the whole duration of your loan
payment period as well.
With a consolidated student loan there are no prepayment
penalties. If you continually pay a higher amount of
money than your actual payment, you can actually pay the
student loan off faster than in a situation where you
did not consolidate your school loans.
Consolidating student loans is always dependent on the
student’s
financial situation. If a student has an
additional federal loan that is not originally included
in the loan consolidation, these debts can be added and
calculated again into another consolidated loan. When
you consolidate your student loans, there are no fees or
charges incurred. The United States Department of
Education does not charge or collect any fees to
students who consolidate their student loans.
There are many student loans that are eligible for
student loan
consolidation. Some of these loans include:
DPLUS - Direct PLUS Loans
DSS - Direct Subsidized Stafford Loans
DUCON - Direct Unsubsidized Consolidation Loan,
including Direct PLUS Consolidation Loans
DUS - Direct Unsubsidized Stafford Loans.
PERK - Federal Perkins Loans, formerly Nations
Defense/National Direct Student Loans (NDSL)
PLUS - Federal PLUS (Parent) Loans
SCON - Subsidized Federal Consolidation Loans
SLS - Federal Supplemental Loans for Students (formerly
Auxiliary Loans to Assist Students (ALAS) and Student
PLUS Loans)
SS - Subsidized Federal Stafford Loans & Guaranteed
Student Loans (GSL)
UCON- Unsubsidized Federal Consolidation Loans
With student loan consolidation the borrower is still entitled to the same federal benefits of their school loans. These benefits include deferment, tax-deductible interest and forbearance. In addition, the loan is guaranteed by the government.