consolidation loan

Also found in: Dictionary, Wikipedia.
Related to consolidation loan: Debt consolidation

Consolidation loan

A loan that is used to combine and finance payments on other loans.

Consolidation Loan

A loan that pays off two or more loans. A consolidation loan often comes with a lower monthly payment and/or interest rate than the previous loans, as well as a longer repayment period. The process is usually called debt consolidation, and is often used for student loans.

consolidation loan

A new loan that pays off two or more existing loans or indebtednesses, usually resulting in lower payments.Home equity lines of credit are often marketed as consolidation loans, urging consumers to pay off high-interest-rate credit cards and automotive debt for lower-interest-rate, tax-deductible, mortgage debt.While the practice does reduce monthly payments significantly, it replaces relatively short term debt with long-term debt and results in higher total interest payments over time.

References in periodicals archive ?
Develop A Marketing Plan And Budget For The Consolidation Loan Product
Borrowers can now comparison shop for student loan refinance or consolidation loans for both Federal and private student loans
Private student loan consolidation is the process of having one or more existing private loans paid off by the creation of a new single consolidation loan with new terms and conditions (such as repayment length, interest rate, repayment benefits, etc.
95), suggests, "When looking for a consolidation loan, tap into your existing bank and credit union relationships.
The group said 85 per cent of people who took out a debt consolidation loan were not asked by their lender about using it to pay off their existing debts and it called on banks to at least warn people about the dangers of not doing this.
Her concern is whether she can get a six-month grace period from repayment on a consolidation loan after graduation.
5 billion in FFELP consolidation loans, and an estimated gain to the federal government of $620 million if the projected FFELP consolidation loan volume of $25.
Student loan consolidation enables borrowers to combine each of their eligible education loans into a single, new, federally guaranteed loan a Federal Consolidation Loan with a fixed interest rate.
Our FEDERAL CONSOLIDATION loan program is one of the nation's leading student load refinance products offering graduates the ability to lock in the lowest rates in the history of the student loan program.
This increase in consolidation loan volume and recent interest rate trends have increased the overall estimated long-term cost to the federal government of providing consolidation loans under the Department of Education's (Education) two major student loan programs--the Federal Family Education Loan Program (FFELP) and the William D.
The Educated Borrower(SM) Private Consolidation Loan will offer students up to a 45% reduction in their monthly payment amount in their first year of repayment.

Full browser ?