Boca Raton Bankruptcy Lawyers

Student Loan Consolidation

Recent and upcoming college graduates have two huge hurdles to overcome. They face a struggling economy with dwindling job opportunities and mounting debt from student loans. Consolidating your student loans may not land you your dream, but it can definitely help lower your loan repayments. The process you have to complete varies for federal and private loans.

Consolidating Federal Loans

Federal loans are those that were granted to you by the government and may or may not have accrued interest while you were in school. Federal student loan consolidation is a fixed-rate refinancing program that takes all of your existing federal loans and combines them to create a one new loan. This could help cut your monthly student loan payment by as much as 50% and reduce your interest rate by .6% if you consolidate during your grace period. Consolidating your loans helps to simplify your finances by giving you one monthly payment.

Payment relief

By creating one consolidated loan, you can receive payment relief, a lengthening of your repayment term from the standard 10 years to up to 30 years. This frees up your disposable income to spend on other expenses like car payments, housing, and work-related necessities. There are no penalties for overpayment, so when the funds become available you can make larger payments and minimize your repayment term.

Consolidating Private loans

Like federal loans, consolidating private loans means lumping everything into one new loan. To consolidate your private loans from undergraduate school, you will have to apply with a qualified co-signer in order to be approved. If you have a graduate degree, you do not have to apply with a co-signer.

Some of the benefits include reduced interest rates, rate reductions, deferment, and no prepayment penalties.

If you are facing financial crisis because of debt or students loans, contact the Boca Raton bankruptcy lawyers of Eric N. Klein P.A. at 561.353.2800 to discuss your case and further legal options.