Consolidating Federal Student Loans

By Norman Harris

Consolidating federal student loans is a very important step to take when you graduate from college. The majority of college students in America are forced to take out federal student loans at the time they go to study in college.

College costs have been increasing over the years in order to graduate. Its important to know how to handle your debt when you leave college and enter the real world. Educate yourself and read about what you can do to help yourself.

Start out by looking at the difference between a private student loan and a federal student loan. Your ultimate goal would be to consolidate your loans. There are more advantages to federal student loans when compared to private loans.

One benefit of consolidating your federal student loans is that when you pay interest on them you can deduct that on your taxes. A second advantage is some federal loans can be forgiven depend on what kind of job you have or programs your involved in. A third benefit of consolidating federal student loans is you can defer the payments if you decide to go back to school.

Private student loans are regular loans that you have to pay back like any other loan and do not have the same benefits of federal loans. Its important not to consolidate both federal and private loans together because you will lose out on the benefits federal loans have to offer.

Again, always consolidate your private student loans separately from your federal student loans, so you can take advantage of the many benefits being offered.

For eligibility on consolidating federal student loans, there are a few factors to be considered. You are eligible to consolidate you federal student loans if you are no longer enrolled in school, considering you have graduated or enrolled in less than half time in classes.

To be eligible for federal student loan consolidation you must still be inside the grace period of the loan or be actively repaying the loan. You can find a lot more information on this topic, so make sure to research it well.

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