Student Loan Consolidation Repayment Program

Student loan consolidation is a repayment program available to those with education debts. This is done by taking a cash advance or credit facility from a special lender and paying off other debts. The lender will allow the borrower a longer period for them to pay than the ten year period normally provided. This allowance will only be allowed during the grace period.

This means that the student will have to make this decision six months after studies, a period in which no payment is required. After the grace period has elapsed, the debtor cannot consolidate the debts. Student loan consolidation can be done with any lender the borrower chooses, since there are no fees involved. The student will therefore have a chance to look around for a lender with a better discount on the debt. However there are lenders who will discriminate in accordance to the minimum balance on the debt.

They cannot however do so on the basis of the number and the type of the debts(s) or even on the category of the education institution that the borrower went through. Any federal education debt is eligible for the student loan consolidation but a debt cannot be consolidated on its own.

If the student wants to consolidate the previous combined debts, they can only do so by combining other debts that were incurred after the first combination. They can also include any other such debt that was not included in the earlier combination. Education debts can only be combined once, and the debtor has to stick to only one lender. The student cannot switch lenders or combine the loans more than once.

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