What is a student loan consolidation?
Parents and students are able to afford college by the loans given out by the department of education. These are the Federal Student Loans.These types of loans have more perks than any other types of loans taken out from banking and other privately owned financial institutions.This Federal Direct Loan program after the is the sole one that is supported by the Federal Government. After the health care and reconciliation Act of 2010. Stats show that in 2015 The loan amount of federal student loans has summed up to 1 trillion dollars.
Perks of having a Federal Student Loan
Loans that are federal have many benefits like;
- Loans do not require a credit check prior to giving out
- There are options to put loans in deferment for a period of time.
- Loans come with forgiveness program option
- Repayment plans based on income and family size
- Low fixed interest rates
If you are trying to take out a federal student loan you must know and understand the different types of loans you may be eligible for or the one that fits your needs.