Student Loan Consolidation Law
Recent student loan consolidation law will affect a lot of graduates for certain but it is not without purpose or benefits. If you are looking to consolidate all your outstanding student loans, you will see that the primary benefit is the reduction of interest rates.
Facing multiple student loans has always been a burden to many students for many years. It is still troublesome even though the interest rates were quite low compared to other loans. Apart from this, the repayment period tends to be very long. The new student loan consolidation law partially takes care of this issue by lowering the interest rates even more and providing a way for student loan repayment period relatively shorter.
Understanding Its Function
Its function is primarily to help students financially in order for them to make their way to school particularly those who belong in the low socioeconomic status population. It is also a form of assistance to students who are facing major debt responsibilities brought about by multiple student loans. The new law enables the students to apply for federal insured educational loans and combine them into a single low interest loan – hence the term consolidation.
Features of Student Loan Consolidation
Apart from the low interest rates and shorter repayment period, it allows you to pay only one outstanding loan. This means that you will only face one financial responsibility at a given time.
Loans that are Eligible
Only those eligible student loans can be consolidated under this program including the FDL and FFEEL.