The Benefits of Consolidating
Student Loan Debt
by Lisa Phillips
February 2008
Student Loan Debt
by Lisa Phillips
February 2008
Federal Loans Eligible for Student Loan Consolidation
- Federal Subsidized and Unsubsidized Federal Stafford Loans
- Federal Direct Loans
- Federal Perkins Loans
- Federal Supplemental Loans for Students (SLS)
- Federally Insured Student Loans (FISL)
- National Direct Student Loans (NDSL)
- Federal Parent Loans for Undergraduate Students (PLUS)
- Loans for Disadvantaged Students (LDS)
- Auxiliary Loan to Assist Students (ALAS)
- Health Education Assistance Loan (HEAL)
- Direct Subsidized and Unsubsidized Loans
- Guaranteed Student Loans
- Health Professions Student Loans
- Loans for Disadvantaged Students
- Nursing Student Loans
Student loan consolidation is a way to bundle student loans into one new
loan. Federal student loans as well as private student loans are eligible for
consolidation. Consolidation offers a lower monthly payment and the
convenience of having one single monthly payment.
The Major Benefits of Student Loan Consolidation
loan. Federal student loans as well as private student loans are eligible for
consolidation. Consolidation offers a lower monthly payment and the
convenience of having one single monthly payment.
The Major Benefits of Student Loan Consolidation
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Save Thousand of Dollars
Consolidation also gives you the benefit of locking in a fixed rate for the
life of the loan. You can save potentially thousands of dollars in interest
fees over the life of the loans by locking in fixed interest rates.
Cash on Hand
The money you save by locking in a low fixed interest rate will put more
money into your hands.
Lower Your Monthly Payments
You can lower your monthly payments by extending the terms of your
loan. Student loan forbearance or deferment can even lower your
interest rates.
No-Prepayment Penalties
There are no prepayment penalties meaning that if you decide to pay off
your loan early there will not be any additional fees or charges to
penalize you.
Tax-Deductible
Student loan consolidation interest is tax-deductible. A special deduction
is allowed for paying interest on a student loan. The student loan interest
deduction is taken as an adjustment to income.
Increase Your Credit Score
When you consolidate your student loans you decrease the amount of
creditors you owe on your credit reports. The amount of debt you carry
accounts for 30% (See Credit Scores) of our credit score and by
decreasing the number of creditors you owe, you can potentially raise
your score over time by having less debt.
Consolidation also gives you the benefit of locking in a fixed rate for the
life of the loan. You can save potentially thousands of dollars in interest
fees over the life of the loans by locking in fixed interest rates.
Cash on Hand
The money you save by locking in a low fixed interest rate will put more
money into your hands.
Lower Your Monthly Payments
You can lower your monthly payments by extending the terms of your
loan. Student loan forbearance or deferment can even lower your
interest rates.
No-Prepayment Penalties
There are no prepayment penalties meaning that if you decide to pay off
your loan early there will not be any additional fees or charges to
penalize you.
Tax-Deductible
Student loan consolidation interest is tax-deductible. A special deduction
is allowed for paying interest on a student loan. The student loan interest
deduction is taken as an adjustment to income.
Increase Your Credit Score
When you consolidate your student loans you decrease the amount of
creditors you owe on your credit reports. The amount of debt you carry
accounts for 30% (See Credit Scores) of our credit score and by
decreasing the number of creditors you owe, you can potentially raise
your score over time by having less debt.
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Student Loan Forgiveness. You may be eligible to get your entire student loans
forgiven and never have to pay back one dime.
Student Loan Rehabilitation. Rehabilitate defaulted student loans and get a fresh
start and restore your good credit.
Disputing information on your credit files
Tips for Disputing Negative information in your credit files.
Debt Validation
How to halt the collection process by requesting a collection agency to validate
your debt.
forgiven and never have to pay back one dime.
Student Loan Rehabilitation. Rehabilitate defaulted student loans and get a fresh
start and restore your good credit.
Disputing information on your credit files
Tips for Disputing Negative information in your credit files.
Debt Validation
How to halt the collection process by requesting a collection agency to validate
your debt.
 | Apply for easy credit to Raise Scores | |
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| Rapid Re-Score Credit Files | |
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