Getting Out of Debt: Applying for a Federal Student Loan

by | Aug 14, 2017 | Financial Services

Talking about debt is never anyone’s idea of fun. But knowing your options is the best way to get yourself out of this financial bind. If you’re still paying of your student loans, there’s a possible end in sight. Consider student loan debt consolidation plans and see if you qualify:

What is it?

It’s a type of loan that consolidates all your debts into just one. It will have a new interest rate too along with a new monthly payment amount. You also get a new payoff date.

What’s the trade-off?

It can be quite inconvenient to pay off loans to multiple lenders. Mistakes could happen and payments could take longer. By going for a loan consolidation plan, it’s much easier to keep track of your payments. Another advantage is that it typically offers you longer repayment periods. That can be a lifesaver, especially when it also lowers the amount you need to pay for every month, says Bankrate.

What are my choices?

There are several loans you can go for. Stafford, Direct Plus and Supplemental loans can be consolidated with other federal student loans with ease so you won’t have a problem if you decide to go for any of these. However, you first need to check if you are legible for the plan.

What do I need?

You will need to put together a list of documents that meet the loan application requirements. However, remember that you aren’t the only one applying for the loan. A mistake or error on any of your requirements along with incomplete submissions could effectively and just as easily put you out of the running. The solution? Hire a service to help you prepare all the documents you need and to keep up with the deadlines when you apply for a Federal student loan, because it will make your life much easier.

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