Where and How to Consolidate Your Student Debt


Phoenix, AZ -- (SBWIRE) -- 01/23/2014 -- The costs of obtaining a higher education have skyrocketed over the past decade, making it a challenge to repay the loans most students acquire while in school. There are ways to make paying off one’s student loans easier. One is debt consolidation for student loans. is here to offer some insight into this process and how to access it. Keep in mind that private loans and federal loans cannot be combined. Here is some information one should know before applying for loan merging:

- Defining Loan Servicers
- Qualification Requirements
- Repayment Plans
- How to Apply for Consolidation

Loan Servicers & What They Do

It’s important to know which loan servicer holds one’s student loans. In order to obtain debt consolidation of one’s student loan debt, one must be able to list them. A loan servicer is a company which deals with the billing services on one’s federal loan. The loan servicer will help one with either making a payment arrangement or learning about consolidation. One’s servicer is assigned by the U.S Department of Education.

Qualifying for Student Loan Consolidation

There are eligibility requirements for those looking into debt consolidation for student loans, and would like to share them. One is that they must have at least one Direct Federal Loan or a FFEL Program loan in its grace period. If a loan is in default, one must make appropriate arrangements for the past due amount with the loan servicer. A graduate must begin paying back his student loans six months after leaving school.

Understanding Repayment Options

Should debt consolidation of one’s student loan arrearage not be the best option for one, the government offers many separate repayment plans. One of them is the Standard Repayment Plan, in which the amount of the payment is at least $50 per month for up to 10 years. The Graduated Repayment Plan starts out low and then increases every two years or so. The Income-Based Plan is based on one’s discretionary income, and is roughly 15% of that amount. Discretionary income is the difference between one’s gross amount earned and 150% of the poverty guideline in one’s area.

Where & How to Apply for Consolidation

If one’s loans are held by the federal government, he can go through the Financial Aid office of his university to learn more about debt consolidation for his student loans. The staff there will provide him with the names of websites he can access to get the process started. For privately held loans, it’s best to speak with the original lender to request loan merging. There are several companies private lenders work with; any of them can provide consolidation loans for those that qualify.

When was created eight years ago, it’s mission was to give consumers understandable, accurate answers to the financial questions they submitted. That goal is very much in force today, and the website consistently meets it. For a free preliminary discussion, dial 866-964-9644.