Consolidating all the federal student loans is like simplifying the various loans into only one loan, like centralizing the several student loans into one. With only one loan to pay, there will be no complex payment schedules to fulfill, which can result to loan delinquency. Per the student loan expert Bruce Mesnekoff, all the federal student loans that are combined and consolidated into one can result to a much lower and affordable repayment amount. This is benefit acquired because the term of the loan that is consolidated can be extended, and can be up to a term of 30 years. Although if the final computation of total loan amount paid is larger because the term is also longer, the lower amount monthly repayment can be seen as a better benefit. This will help the student borrower from the financial difficulties faced, thus more benefits for him.
There are other options that can be availed of though, if the borrower is really in some financial difficulties. Deferment and forbearance programs can also be availed of, but this is only temporary and the student borrower still has to make repayments. With loan consolidation, the repayment amount that is more of the problem when in financial trouble, effects can be lessened because this is already more affordable. This can be a reason why student borrowers should have this because of the benefits acquired with loan consolidation, according to the student loan expert Bruce Mesnekoff.
If the student borrower is worried as to the kinds of student loans that can be consolidated, practically all types of federal student loans can be qualified for this. Only the federal government funded loans are these types though, and private student loans are not included. Students should take note of this, and if they are thinking of loan consolidation as a future solution to repayment concerns, they should think of first of only the federal student loans to avail, according to Bruce Mesnekoff, the student loan expert on loan management and consolidation.
Student borrowers thinking of loan consolidation as an option because they are having repayment concerns should avoid getting their federal student loans going on default because this can give them problems. With the student loans on default, they should seek first arrangements with their loan servicers for an accepted repayment arrangement before they can get qualified and approved. They can seek arrangements though for the income based repayment plan, pay as you earn repayment plan, or income contingent repayment plan before they can get approved for the loan consolidation.
The loan consolidation can be the better option to think of for the student borrower though because there are no charges for an application made. Student borrowers should just make sure that they are qualified for this and they can make conclusions that the federal student loans are those with more benefits for them, per Bruce Mesnekoff, the expert on student loan management and consolidation.