Any loan is a double edged sword

Multiple loans make the edges even sharper. Managing repayment of loans is a tiresome job. With different features, interest rates, EMI, and different periods of settlement the payment schedule of debts becomes all the more confusing making the job of the loan takers cumbersome.

A potential solution to the above problem is to consolidate loans to a single chunk. The activity to consolidate personal loans involves clubbing up of different loans into one that facilitates easy and effective repayment.

When you are in debt consolidation ; it makes varied debts accumulated more manageable and reduces the vulnerability of the borrower in making mistakes related to loan repayment, landing up paying late payment fee and check bounce charges. If you consolidate loans there is no need for several pay lists; instead you can avail a single repayment scheme having a common interest rate and with only one lender and only one bill.

The advantages you gain if you consolidate loans are: Flexible repayment options- It is possible to alter the repayment options as and when our economic conditions improve or decline.
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Consolidate loans 2

Switching of plans- You can jump from one plan to another depending on your preferences.

One lender and one monthly payment- It reduces the discomfort in maintaining different bills by unifying all our loans into one.

Reduced monthly payments- There are even greater chances for the reduction in the monthly payment which would otherwise prove to be a financial strain.

Varied deferment options - We can even temporarily stop our monthly payments.

No maximum or minimum qualifying limits - There is no minimum limit for the consolidation of the loan.

Free consolidation- The consolidation is also free of cost.

Retention of subsidy benefits- Direct consolidation loans can either be subsidized or unsubsidized.

There are two types of consolidate loans; direct consolidation loans and (FFEL) Family Federal Education Loan. How to apply? The direct consolidation loan can either be availed online, or through telephone or even through mails.

Process of consolidation: It comprises of a series of steps that involves the elaborate processing of the information. It includes; review of application, verification of loan, ICR plan – Income Contingent Repayment processing, Sending of loan statement to borrowers, Payment to loan holders, Setting of an account, and adding loans to an existing direct consolidation loan. So, work towards the best loan repayment method today!