Sunday, March 16, 2008

What is student loan consolidation?

Student loan consolidation is something which many college students try to do. It is a way to to consolidate (or combine) the loans that a college student owes. In the United States there are two organizations, the FFELP and the FDLP, that allow students to consolidate PLUS Loans, Stafford Loans, and Federal Perkins Loans. What is the benefit of consolidating a student loan? Well, consolidation loans tend to have longer terms that traditional loans. Debtors usually have the option between 10 and 30 years, which is usually ample time for a student to finish school and get a job. The Federal Loan Consolidation program in the United States was created in 1986.

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