What is a Stafford Loan?

A Federal Stafford Loan is the most common loan program used by college students. This government-guaranteed loan offers low, fixed interest rates and the program is sometimes tax-deductible. Best of all, you have up until six months after graduation to pay off the loan.

When to consider Stafford Loan Consolidation

Although the terms of a Stafford Loan seem appealing, you can still find yourself with a lot of debt that you can't possibly pay off in the loan's payment period. There is an option. You can consider a Stafford Loan Consolidation. This consolidation allows you to combine your loans into one lump sum that offers a low interest rate and a payment period that is best for your budget.

Do you qualify?

Not everyone can apply for and be approved for Stafford Loan Consolidation. In order to be eligible, there are several criteria you must meet. You need to still be within your loan's grace period and you must also be in the repayment stages. Lastly, you cannot have other pending consolidation applications at the time you apply for Stafford Loan Consolidation.

Do your homework

Prior to applying for Stafford Loan Consolidation, you must get all the facts available on the program. In some cases, consolidating your loans mean you have better payment options, but you must also give up some of the perks, such as repayment and deferment options. Once you sign the application and the promissory note, there's no going back. Your signature makes you obligated to the new loan's terms. Applying for Stafford Loan Consolidation is much like the application process for various other loans. You must fill out an application and the answers you give will be checked for accuracy before you can go any further. And, in some cases, you may have to endure a credit check. Once your application has been reviewed, the existing loans must be paid off and combined into one new loan. The new loan will offer a lower interest rate and various payment options. It is up to you and your lender to decide if you should choose a fixed or variable rate, and what type of payment period works best for you.

Stafford Loan Consolidation can help

Although the terms and conditions of a Stafford Loan look good, you still must pay it off in the period specified. If you find yourself burdened with several high payments, consider applying for Stafford Loan Consolidation to help you find payment options that are right for you.