Students with different loans can have these loans harmonized into a single loan program. This program of loan is referred to as the Federal Consolidation Student Loan. This loan often comes with an interest rate that is fixed throughout the course of the MTP Loans, and usually, has a life span of between ten to thirty years.  To be eligible for this loan program, students must fulfill some certain conditions, which are:
The student must have finished or left school.

The student must have been meeting up with his loan repayment as scheduled.

The total loan of such student must be up to $10,000

The consolidated student loan can either be offered by the Department of Education called the Federal Direct Student Loan Program or through the government by private financial institutions called the Federal Family Education Loan Program. This loan can be applied for through the internet. There are four steps involved in the application process. They are:

Ensure that the entire needed document for the application such as the promissory note and the introductory letter is made ready.

E-sign the promissory note when applying online

Send the printed promissory note that has been signed

Save the application




However, there are a few disadvantages of the consolidated student loan. They are: Applying for the Federal Consolidated Student Loan means a higher sum is paid on the loan eventually because of the repayment plan that has been extended. When compared to the other loans, a higher interest is paid on the consolidated loan. After a larger percentage of your loan has been paid-off, taking up a consolidated loan program may not be of any advantage again.

So what are the disadvantages?

The consolidated loan program makes it a lot easier for the student to manage their loan since they will now pay only one monthly payment and to one lender. This loan program allows for flexibility in terms of the option of payment. A student can, therefore, make the choice of payment that is most convenient for them.



Students do not have to pay any fee for consolidating their loans. Deferment of loans is allowed for an extended period for the student who takes up the loan program. The monthly payment made on the consolidated loan is often lower. Subsidies could be given to a student in the loan program.


With the federal consolidated loan student loans, you don't have to go through the difficulty of having to deal with many lenders since all the loans have been consolidated into one program. The option of paying a lower monthly payment on the loan and over an extended period of time will free up more funds for the student to use on other things. Choosing the consolidated loan program is a good option for students who have the dream of studying at a higher level of education.




Working as a volunteer. Volunteering to work in certain organizations can qualify you for loan forgiveness. For example, if you volunteer as a worker at the AmeriCorps for up to a year, you could have as much as $4,725 for your loan repayment. Also, Peace Corps volunteers could have about 70% of their student loan paid off. Serving in the military could earn you as much as $10,000 in loan repayment by the Army National Guard of the United States.

There are some communities in which if you teach, you could qualify for a loan repayment. Also, the Law School often helps in loan repayment for students who offer legal services in non-profit organizations or in some specific communities. So also are students doing clinical research given loan repayment that could be up to $35,000 by the National Institutes of Health in the US. Therefore, the knowledge of all this information put you in a better position for loan consolidation. It is advisable however not to put the low-interest loan in the consolidation program because of the advantage the low-interest loan offer.

Having your loan consolidated whereby you deal with only one lender and pay lower monthly payment offers the best way to manage your loan. Therefore, take your time to do a diligent search on the internet to know which of the options given will put you in the best position for the loan consolidation program. This also will help you to make the loan repayment as at and when due.


Our Services