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Refinance Consolidated Student Loan

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Most college graduates face the inevitable reality of having to refinance consolidated student loans. America’s Student Loan Providers expect that by 2014, the number of students enrolled in a four-year degree-granting program will increase by 16 percent. Coupled with this statistic, the College Board, as often as 2006, notes university and college tuitions costs as rising faster than the rate of inflation.

Want to refinance a consolidated student loan?
Refinance consolidated student loans today.

Congress created the Federal Direct Student Loan Program and the Federal Family Education Loan Program, known as the FDLP and the FFELP respectively, to aid postsecondary students. In response to mounting students’ debts, the Department of Education began the Federal Loan Consolidation Program in 1986.

In 2006, the top private and government consolidation lenders for student loans according to the Department of Education included:

  • The Federal Direct Student Loan Program
  • JP Morgan Chase
  • NextStudent
  • Sallie Mae
  • NelNet
  • Citibank
  • Wachovia Education Finance
  • Student Loan Xpress

With both the cost of going to a college or university and the number of students competing for financial aid rising, many students indebt their futures to costly loan agreements with student loan lending institutions. Many programs exist for loan repayment, including the option to consolidate them all into one easy monthly payment. Fiscally wise students, often times in response to the rush of debt obligations upon or soon after graduation, refinance consolidated student loans at some point. The decision to refinance consolidated student loans is a crucial step in maintaining financial stability when newly entering the workforce following graduation. Help is available to those wishing to refinance a consolidated student loan via federal consolidation loans as well as through private lenders.

Of the top lending entities of student loan consolidation in 2006, the Federal Direct Student Loan Program carried 57% of these new loans. Private lending institutions such as Sallie Mae, Citibank, JP Morgan Chase, and various others cover the remaining 43%, or approximately $45.8 billion dollars according to U.S. Department of Education. Whether selecting a private or federally supported consolidation loan, refinancing options for each loan is equally available to students, and as time goes forward, many graduates find more than ample impetus to refinance consolidated student loans. Many students, however, find benefits from trying to reconsolidate via a federal consolidation loan due to the lower interest rates overall and the favorable repayment terms allowed for students.

In most cases, consolidated loans combine all existing loans under a single loan. The ease and efficiency of tracking debts in this manner is undisputable, however, the financial benefits generally revolve on a case-by-case basis. For many students, refinancing an already consolidated student loan is in response to lower interest rates with other lenders or impending financial insecurity, which drivers the graduate or student to reduce their monthly payment amounts. These loans exist for longer-term periods than typical loans, usually around ten to thirty years, and while the monthly payments lower, the total amount repaid over the course of the loan rises. When adding all outstanding student loan debts, a financial loan advisor will calculate future interest rates on a consolidated student loan using a weighted average of the previous loans up to the ceiling amount of 8.25% as mandated by the federal government. For those refinancing consolidated student loans, terms will vary depending on previous consolidation agreements.

Want to refinance a consolidated student loan?
Refinance consolidated student loans today.