Consolidate My Childs Student Loans
Putting your child through college education is a task easier said than done. Your child may have to take several loans through out his/her college years. As a parent you can help them out or assist them in clearing these loans. When your child has too many student loans the best solution is to consolidate them. |
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However, there are several things that you need to know, to achieve this. Student loans can be obtained through private and federal institutions.
First of all the student should have completed his education to be able to consolidate. Secondly he should still have grace period left on the loans and should have been current on making the payments. Only if these two conditions are satisfied, can one go for debt consolidation.
Federal student loans can be consolidated into one single loan. If all the loans are federal, then the task becomes very simple. The most common type of federal loans are Stafford, PLUS, FISL and SLS. Besides these, there are several other federal loan and all of them are federally guaranteed loans.
The government itself has set up a division for consolidating Federal loans, and the interest rate for consolidation is also set by them.
When the federal guaranteed loans are consolidated, the interest rate would be a weighted average of all the interest rates put together.
If your child has private student loans, then consolidation may be a good idea. It works the same way in which a regular debt consolidation program is used to clear personal debt.
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