Government Student Loan Consolidation – What are the Benefits?

If you happen to have several different government student loans, consolidation may be an option for you. Just a few of the government loans that can be consolidated include Perkins loans, Stafford Loans, and even PLUS loans. There are more options than ever for consolidating loans today, and doing so can allow you to enjoy several benefits. Here is a look at the benefits of government student loan consolidation.

1. Low and Stable Rates

One of the main benefits of consolidating your government student loans is that you will get low and stable rates. The new rate you get on the loan will be an average of the other loans that is weighted and it can’t go about 8.25%. Once you consolidate, throughout the life of the loan the rates will remain the same, which can save money and make it easier for you to plan your financial future.

2. One Payment

After you get a consolidation loan for your federal loans, you’ll benefit from only having one payment. Instead of having multiple loans that you have to pay on each month, you’ll only have one payment. It makes it easier for you to remember one payment, rather than having to remember to send out many different payments every month.

3. Lower Payments

In most cases, you’ll also benefit from lower payments each month as well. Since you may be able to extend your loan terms, it can make your monthly payment lower. When you are just starting out and finances are a bit tight, this can be a huge help to you financially.

4. Various Repayment Options

You aren’t just stuck with one repayment option when it comes to government student loan consolidation. There are various plans that you can choose from. There is the standard repayment plan, the extended repayment plan, graduated repayment plan, and a repayment plan that is income contingent as well. This allows you to find a play for repayment that will best fit your budget and financial needs.

5. Credit Doesn’t Matter

If you were consolidating private loans, you would be subject to a credit check. However, when you are consolidating government loans, the credit standing doesn’t matter. These consolidation options are not based on credit, so even those who have less than perfect credit can enjoy all the benefit of consolidating their government student loans.

These are just a few of the benefits that can be enjoyed when you consolidate your loans from the government. Other benefits include easy application for the loan, no fees, and no penalty for prepayment on the consolidation loan.