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
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.