Student Loan Consolidation Services

With educational costs on the rise, students are becoming more and more dependent on student loans. Students that have multiple loans after they graduate may find it somewhat difficult to pay off depending on the field they studied in. Fortunately, student loan consolidation services offer options that may reduce the student's burden.

Who is eligible?

Any student that has federal student loans in their name is eligible for consolidation services. However, some general requirements must be met in order to qualify:

	More than one federal student loan. If you only have one loan, consolidation becomes unnecessary.
	All loans must be in good standing, meaning no delinquencies present. The student must either still be in the six-month post-graduate grace period, or have made at least three monthly payments on time.
	Generally the student needs to be no longer enrolled in school. There are exceptions to this rule.
	Some loans require a minimum loan amount; $10,000 is the average.

Consolidation loans are not unlike regular loans, in that they still need to be paid off in full within a reasonable time period. However, most consolidation loan services extend the repayment period so students have longer to pay off the loans. This means the minimum monthly payment can be lowered for students suffering from economic hardships. Maximum repayment periods vary from bank to bank, but most banks will have a 10-30 year repayment period.

Students that are considering extending the loan repayment period should be aware that they will end up paying more in the long run because of accumulated interest and costs.