A consolidation loan is a loan which is used to pay off all or a majority of your existing credit which may comprise of secured loans, unsecured loans, car loans, and credit cards or store cards. A consolidation loan is often used to reduce the amount of interest you pay by having your various pieces of credit with separate companies, paid off and having a lower interest rate on one larger loan. This also gives the benefit in most cases of a reduced monthly outgoings amount which means you have more free income each month, and it is much easier to have just one payment rather than 7 or 8 separate ones for example.
a loan obtained to pay off existing This loan program will allow borrowers to include a defaulted federal student loan in the consolidation if the borrower agrees to the Income Contingency LendingTree -- Student Loan Center Student Loan Center
a loan that combines and finances payments on other loans, while a consolidation plan is an arrangement in which a debt consolidator facilitates your bill payments and works with your creditors to reduce or eliminate interest and late fees
Borrowing arranged for this purpose are set up to pay of other loans with higher interest rates or to bring several loans or credit cards under one umbrella to simplify payments and decrease loan cost.
Consolidation of qualified student loans into a single loan. See “Ineligible loans” to learn what pitfalls to avoid if you are considering consolidating your loans. See “FFEL Consolidation Loan” for consolidation of federally guaranteed student loans.
There are two categories of consolidation loans-Federal Family Education Loan Program (FFELP) Consolidation Loans and Direct Consolidation Loans. Both allow the borrower to combine different types and amounts of federal student loans to simplify repayment. A consolidation loan pays off the existing loans; the borrower then repays the consolidation loan.
A loan made to a student when an eligible lender pays off existing student loans and creates one new loan. Students can combine certain eligible existing student loans into one loan and increase their repayment time frame 10 to 30 years depending on the balance. Students must be out of school.
a loan that allows borrowers to lower monthly payments by combining original federal loans into a single loan. You may only consolidate once. More information is available at www.loanconsolidation.ed.gov.
A loan usually obtained for the purpose of reducing the amount of the payments of bills owing by consolidating the bills into one loan payment. The consumer pays off several bills with the proceeds from one loan and is left with one consolidated monthly payment.
Loan program for eligible borrowers under which their obligations with respect to eligible student loans are paid off by a new loan that combines the aggregate indebtedness of eligible loans into a single debt.
A consolidation loan is usually obtained for the purpose of reducing the amount of the payments of bills owing by consolidating the debt into one loan payment. In effect, you pay off several bills with the proceeds from one loan, leaving you with one consolidated monthly payment.
A new, single loan that results from refinancing one or more federal education loans. The new loan is for the total amount of all combined loans and usually includes extended repayment terms and other options and benefits that result in a lower, more manageable monthly payment.
A loan made to enable a borrower with different types of loans to obtain a single loan with one interest rate and one repayment schedule. Federal Perkins, Federal Stafford (subsidized and unsubsidized), Direct Subsidized and Direct Unsubsidized, Health Education Assistance Loans (HEAL), Health Professions Student Loans, and Loans for Disadvantaged Students may be combined for purposes of consolidation, subject to certain eligibility requirements. A consolidation loan pays off the existing loans; the borrower then repays the consolidated loan.
This type of loan is designed to pay off any existing debts, such as credit cards, Hire Purchase, store cards etc. The aim is to lower your monthly repayments and give you more financial control as you will make just one re-payment each month.
This is a loan that allows borrowers to lower their monthly payments by replacing their original loan(s) with a new loan. Consolidation loans usually have a longer period of repayment, and more interest that must be paid.
Loan consolidation is designed to help students simplify loan repayment by allowing the borrower to consolidate several types of federal student loans with various repayment schedules into one loan. Students who have more than one loan may find that a Consolidation Loan simplifies repayment since you only make one payment per month, and the interest rate on the Consolidation Loan may be lower than that of one or more of your loans. Most federal loans can be consolidated into a Consolidation Loan. After graduation, students should review the consolidation guidelines to determine if it would be appropriate to consolidate their loans. Loan Programs Eligible for Consolidation: Stafford â€“ (formerly GSL), GSL â€“ Guaranteed Student Loan, SLS â€“ Supplemental Loan for Students, NDSL â€“ National Direct/Defense Student Loan, Perkins â€“ (formerly NDSL), FISL â€“ Federally Insured Student Loan, ALAS â€“ Auxiliary Loans to Assist Student Program (Sometimes called Student PLUS), HPSL â€“ Health Professions Student Loan, PLUS â€“ Parent Loan for Undergraduate Students, HEAL â€“ Health Education Alternative Loan
The practice of combining all debts into the one loan. This may include paying out personal, car, and credit card debt and replacing it with funds from the mortgage. The main benefit is to reduce the interest rate, as mortgage rates tend to be the cheapest source of funds.
Loan obtained to help reduce the amount of payments on bills owed. This is done by combining the bills into one loan payment. The borrower then pays off several bills with the proceeds from the one loan.
A loan that combines multiple federal student loans into a single loan with one monthly payment. Loans that may be consolidated are those under the following programs: All Title IV loan programs Health Professions Student Loan (HPSL) Program Health Education Assistance Loan (HEAL) Program Nursing Student Loan Program (NSLP).