Alternate Consolidation Loan Student

Alternate student loan consolidation or more often called private student loan consolidation is the method of consolidating every private or non-federal borrowing for education in a single bill with only one payment in a month. Individuals, who consolidate their debt of private education loan, simplify their monthly finances by lowering their monthly payments of their education loans. The main task of a Federal Loan Consolidation for Students is to improve the credit rating of an individual. However, alternate consolidations have credit based interest rates. Individuals, who opt for federal consolidation to improve the credit rating, receive reasonable interest rates.

Facts and figures related:

The minimum borrowed sum from such consolidation cannot fall below $10,000 and should not exceed $250,000. If the loan amount exceeds $40,000, the applicant can have a period for repayment of around 25 years. For education loans below $40,000, period for repayment is around 20 years. The rate of interest in an alternate consolidation depends upon the credit rating of the applicant and lies in the range of 0% – 8.25 %. It is also affected by Margin Adjustment index. A consolidation can be performed on loan amounts of two people of the same family or between spouses.

Eligibility criteria and benefits:

People, who have outstanding debts in non-federal but education-associated expenditures, are Eligible for alternate student consolidation loan. The benefits of an alternative student loan consolidation are as follows:

Formation of a single loan comprising of all private loans for education

Monthly payments of the education loans are reduced

Release of the cosigners after 4 years

Reduction in rate of interests for payments made on time

No penalties prior to payment

Once you apply for an alternate education consolidation loan, the financial distress related to the prevailing loan can be easily removed.