It has become inevitable for students to complete their qualification without obtaining loans especially in the low context cultures like United States of America and Europe. Repayment of such loans becomes a burden because of heavy financial cost. Keeping in view this situation United States of America government introduced Federal Student Loan Consolidation Program to provide some relief to students. Salient features of this program are mentioned below;
Like other consolidation loan programs Federal Student Loan Consolidation Program provides benefits like Lower Interest Rate, Fixed Interest Rate, Easy Organization of Loans and Lengthening Time period of Repayment.
You can get deductible tax credit on consolidation of educational loan. It means you need to pay less tax to government due to payment of interest of educational loan. It will save your precious money. This feature is not available on any other loan consolidation.
To qualify for federal student loan consolidation program, you should not be enrolled in any school.
You must be repaying your loan from a considerable period of time.
Minimum amount of loan consolidation is $10,000. In some cases applicant can also include unsecured debt consolidation to reach the amount mentioned above.
Federal Student Loan Consolidation Program is governed by United States of America so chances of default are absolute zero percent.
If you are qualified to obtain Federal Student Consolidation Loan, it will have significant impact on your credit ratings. Government United States of America adopts very strict criterion when giving Federal Student Consolidation Loan and other banking companies rely on government of United States of America. Successful repayment of Federal Student Consolidation Loan will improve your credit ratings.
Federal Student Loan Consolidation Program deals with unsecured loans. So a person having nothing to provide as collateral security may apply for such loan.
You must have noticed that it is the great step of government of United States of America. United States of America is again trend setter in this regard and we hope that other developed countries will also introduce such schemes to enhance literacy rate in their countries.