2011

Disclaimer

This web site is designed for information purposes only. To the fullest extent permitted by applicable law, this web site makes no representations or warranties of any kind, express or implied, regarding the use or the results of this web site in terms of its correctness, accuracy, reliability, or otherwise. This web site shall not be liable for any special, indirect, consequential, or incidental damages, or damages for lost of profits, loss of revenue, or loss of use, arising out of or related to this web site or the information contained in it.

:: Contact Us :: Sitemap :: Debt Consolidation Loans

Home Credit Card Debt Consolidation Loans Student Loan Consolidation Federal Loan Consolidation

Contents

How to Consolidate Student Loans

How to Reduce Student Loan Debt

How to Defer Student Loans

How to Apply for Loan Forgiveness

How to Consolidate Your Bills

How to Freeze Your Credit Report

How to Get a Low Interest Rate Credit Card

How to File Taxes Online for Free

How to File for Unemployment

How to File for Unemployment in Texas

How to File for Unemployment in California

How to File for Unemployment in Kentucky

How to File for Unemployment in Michigan

How to File for Unemployment in Nevada

How to File for Unemployment in North Carolina

How to File for Unemployment in Ohio

How to File for Unemployment in Oregon

How to File for Unemployment in Rhode Island

How to File for Unemployment in South Carolina

How to File for Unemployment in Tennessee

How to File for Unemployment in Florida

How to Apply for Financial Aid

How to Apply for Financial Aid at Ohio State University

How to Apply for Financial Aid at New York University

How to Apply for Financial Aid at University of Southern California

How to Apply for Financial Aid for College

Federal Loan Consolidation

In general, federal loan consolidation is the unification of two or more existing loans into one large loan. With such, a fixed interest rate may be obtained.

Federal loan consolidation is a sure way to avoid bankruptcy, and to avoid spiraling debts. Because consolidation will not be awarded at all without certain conditions (such as economic hardship), extended repayment is also part of the deal. Aside from the option for extended repayment, an indebted person may also be given lower monthly dues.

You can obtain a fixed interest rate (as opposed to other interest rates that progressively increase). In a large way, federal debt consolidation allows you peace of mind. You will be indebted only to one economic entity, and you would only need to make one payment a month.

Generally, the FTC described debt consolidation in this manner:

“You may be able to lower your cost of credit by consolidating your debt through a second mortgage or a home equity line of credit.”

Application for Federal Debt Consolidation

Application for federal debt consolidation may be done through the telephone or through the submission of an online application.

Conditions

Unlike other forms of debt consolidation, this one does not require the checking of your credit history or your credit score. The application is processed immediately after submission. Loan holders are then contacted and are told that a pay-off will occur.

A negotiation will ensue between the loan holders and the agency or the outfit that is handling the consolidation. Based on what the loan holders say, the individual debts are paid in full. The sum of the debts paid by the consolidating entity is then added and is re-transferred to a fresh new loan.

The person who had been approved for the loan will received a “Truth in Lending” document (a disclosure statement) which enumerates the conditions of the loan and other particular coordinates.

The first bill will arrive within the month, and the person is obligated to pay the bill regularly to end his financial worries for the last time. The process of consolidating a person’s loans may take from between six weeks to about eight weeks.

In the meantime, a person is advised to budget his or her cash flow wisely and to prepare for the long haul. According to Carmen Welsh, a CPA and debt counselor in Washington:

“Being debt-free is one of the clear joys in life. There’s really nothing like it, being liberated from debt. This is why discipline has to be part of the budgeting. Sacrifices have to be made so the debts can be repaid more quickly. After that a person has to live more wisely, and spend more wisely too.”

Eligible Loans

Aside from federal student loans, there are other loans that are eligible for federal consolidation (Federal Perkins Loan, Federal Stafford Loan, and Federal Direct Loan).

However, private loans are not nor will ever be part of the federal consolidation program of the US. If you’re having trouble with private loans, it’s best to approach a private loan consolidation company for your needs. The basic premises will be the same.