consolidation loan

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Related to Loan Consolidation: personal 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 ?
Private student loan consolidation products are a great way to provide graduates with more repayment options, take control of their financial planning and to save money," explained Aberle.
However, there may be some drawbacks to federal loan consolidation, including the loss of borrower benefits such as possible loan cancellation.
Consolidate strategically: Loan consolidation combines multiple student loans into a single loan.
General loan issues, including discharges based on total and permanent disability, teacher loan forgiveness, applying the Civil Relief Act to borrowers, prohibited inducements governing Federal Family Education Loans and eligibility for loan consolidation.
If you are a homeowner, a home equity line of credit or loan can provide an avenue to loan consolidation depending on your credit rating and how much equity you have in your home.
But other aspects of personal finance, such as loan consolidation and credit card management, aren't on most Americans' to-do lists for this year.
The tips range from cutting housing, transportation, and clothing costs to earning extra money at home (sell extra stuff, get a roommate or tenant, and itemize your deductions) to the pros and cons of loan consolidation to how to wipe out the plague of credit card debt.
The AAP also has partnered with the Student Assistance Foundation to offer the AAP Student Loan Consolidation Program (www.
This Congressional Budget Office (CBO) background paper describes the valuation of a typical student loan consolidation option, one in which a variable-rate 10-year loan is converted into a fixed-rate loan with a term to maturity of 20 years.
However, federal rules provide a safety net by limiting how much any lender can charge for subsidized loan consolidation.
The federally guaranteed Student Loan Consolidation Program offered by Collegiate Funding Services (CFS) allows members to lock in a fixed interest rate and reduce their monthly loan payments by consolidating all current loans at a low fixed-interest rate.
This letter responds to a question from the Chairman, House Committee on Education and the Workforce, related to the recommendation we made in our October 31, 2003, report Student Loan Programs: As Federal Costs of Loan Consolidation Rise, Other Options Should Be Examined (GAO-04-101), which we completed at the Chairman's request.