Seamless Online College Loan Consolidation
Do It Yourself Services
The internet age has had its learning curve and most users savvy enough to get to the website of a student loan lender have what it takes to navigate the process of self-service banking and financial management. Many borrowers now manage their bank accounts online and even make regular bill payments. Automobiles may be bought online, credit cards applied for, and trips around the world booked and itineraries tracked. Why not student loan consolidations?
Student consolidation loans come in three different types all of which may be accessed online.
Direct Federal Consolidation Loans
The federal government has come a long way in providing the type of accessible information and products necessary for college students. The Federal Student Aid website provides all types of links to related federal aid sources, as well as the Direct Consolidation Loan. Borrowers interested in consolidating one or more direct federal student loans may talk directly to an account specialist or simply fill out the online application. The interest rate is fixed based on the weighted average of the federal loans you hold as of the day you apply for consolidation. That figure is then rounded up to the next 1/8th percent and the whole shebang is capped at 8.25. If you’re applying for consolidation, use the online calculator to figure your interest rate.
Read the Web Tips before you complete the online application. You may save your application and promissory note for later review before you submit.
Federal Family Education Loan Program (FFELP)
FFELP lenders are widely available, but many no longer offer the federal consolidation loan. However, in its place lenders have beefed up information on alternative forms of debt management, such as deferment, forbearance and have added an extended repayment program that tries to mimic a few of the features of a consolidation.
This is not to say that federal consolidations are non-existent, only that you will have to look harder for them without expectations for great deals and discounts.
Private Consolidation Loans
Private loan consolidation products—those used to manage multiple private student loans-- are most commonly found among top commercial lenders. Within the commercial realm you will find well-designed and managed online features. These lenders have a huge online customer base many of which regularly manage their accounts via online, secure connections. When you apply online you may receive approvals anywhere from within a few days to a few weeks.
Manage Your Consolidation Loan Over the Long-Term
Once you’ve consolidated your federal and/or private student loans you’ll have the flexibility to manage your loans online. Make payments, add on further loans and keep abreast of your loan’s progress. You’re now in a long-term relationship.
