Federal education loan consolidation

There are times that the student cannot keep up with the payments towards these loans . For such students the U.S government has come up with special federal education loan consolidation programs .

These federal loan consolidation programs can be availed by students irrespective of the fact whether they are still studying or have completed their education .If you are also undergoing debt problems with the student loans then you can apply for the Federal loan consolidation programs and freedom from the student debts .

Advantages of Federal education loan consolidation

The advantages of taking a federal loan consolidation include:


  • The borrower can have the advantage of paying a lower interest rate on the loan instead of the higher interest rate that is being paid on the student loan.

  • With the help of these loans the borrower can avoid paying the penalties on the student loans that is charged in case of non-payment.

  • With the help of federal loan consolidation the borrower can avoid the hassles of paying to a number of lenders and can have payments made to a single lender.

    • The repayment plans

    There are basically four repayment plans available with federal education loans consolidation.


    Standard Repayment Plan:With this student debt consolidation plan you can pay off the student loan debt over a period of 10 years at fixed interest rates .

    Extended Repayment Plan: With this plan the payments can be extended for 30 years at fixed rates .

    Graduated Repayment Plan: Payments are similar to extended repayment plan but your monthly payments would increase every two years .

    Income Repayment Plan:Monthly payments are not fixed it is based on several factors like the amount that you are supposed to pay, the income level, the size of your family, etc . the repayment period on this plan can go up to 25 years.

    Why take federal education loan consolidation?

    With the help of federal loan consolidation the risk of defaulting on the loan reduces and this would help the borrower in improving his credit score.This can help the student to acquire a low interest loan in the future .With the help of federal loan consolidation the student can pay off the loan at flexible terms and lower interest rates . It is a cost effective way of managing debts.The student is not required to make multiple payments and this makes it easier for the student to manage the payments .

    Lenders for these loans

    Some of the lenders for these loans include:

    Sallie Mae:

    Contact: Toll free: (888) 2-SALliE (888-272-5543) Sallie Mae, Inc., P.O. Box 9500, Wilkes-Barre, PA 18773-9500.

    Ed Fed Affiliates:

    Fill their contact form to get more details.

    Graduate Student Loan Associates:

    Contact: 4445 Eastgate Mall Dr, #240, San Diego, CA 92121 .

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