Student loan consolidation comparison of the top programs offered in the US

There are two kinds of student loan consolidation programs in the US that are being offered by the financial institutions at this moment of time. It includes federal student loan consolidation program and private student loan consolidation program.

Federal Student Loan Consolidation Program

As evident from the name itself, federal student loan consolidation program is offered by the federal government to make sure that students complete their study without any problem. The best part about this consolidation program is that the repayment schedule is quite flexible here and the interest rates are also quite low.

Some of the other benefits of federal student loan consolidation program are mentioned below:

• You only need to do one monthly payment to the financial institution.
• As your monthly payment is set on the basis of your financial condition, you do not need to pay huge monthly installments.
• You only have to deal with one financial institution.
• Application process is quite straightforward. As a matter of fact, you can fill the application form from the comfort of your home.

Private Student Loan Consolidation Program

Private student loan consolidation program, on the other hand, is offered by the private financial institutions. You have to pay high interest rates when availing this consolidation program. This is because of the simple reason that your monthly source of income is not that great. But yes, once your monthly source of income increases, financial institution can decrease your interest rates.

The most intriguing thing about private student loan consolidation program is that you can get a grace period of six months if you are unable to get a job after study. You do not have to pay a single penny during the grace period. Other benefits associated with this consolidation program are mentioned below:

• You can improve your credit score with this consolidation program.
• As is the case with federal student loan consolidation, you only need to deal with one private lender in private student loan consolidation.
• Lower monthly payments.
• Application procedure is quite simple. You just need to submit few documents such as your driving license and salary slip.