College Loan Consolidation Programs: Factors to Strengthen Your Application

In every walk of life, loans can lead to considerable debts and financial woes. For students and graduates alike, the pressure created by college debts can be crippling. But there is a way to handle the problem without going to the bankruptcy court. Through college loan consolidation programs the debt can be cleared and pressure lessened.The advantages to a consolidation program are many, but the critical factor is that it makes clearing college debt a simpler task than it might otherwise be. With several individual loans taken out over four or five years in college, repayments are complicated by differing repayment schedules, loan balances, interest rates and even late fees.Consolidation replaces the individual debts with one single debt, with one interest rate and a more flexible repayment schedule. This effectively means the college loans are cleared, and the replacement debt is easier to repay. Still, it is necessary to qualify for a program and, in that respect, several factors should kept in mind.Know Your Own StatusKnowing where to start from is all about knowing what your financial status is. In fact, this is vital when seeking a college loan consolidation program since the extent of the debt a student or graduate faces dictates the size of the consolidation loan needed. So, check out the up-to-date details of existing debts.When this is completed, the size of the task ahead, in terms of clearing college debt, becomes clearer. The complete debt can be accurately calculated and the probable improvement assessed.For example, if the balance on five loans adds up to $70,000, with the various interest rates the monthly repayment could be $800. Buying out those college loans and repaying the consolidation loan over a longer term (20 years), a more affordable repayment of $300 may be required.Meeting the Required CriteriaCollege loan consolidation programs are not available to just anyone. Whether seeking a federal consolidation program or a private one, the lender reserves approval to those who are in genuine need of financial assistance - though, private programs do have a wider scope than their federal equivalent.To qualify, the applicant has to have received approval on recognized student loans, so that general personal loans are not included in the program. Other general qualifications are that the applicant is over 18 years old, and is a US citizen. Also, applicants must face the difficult task of clearing college debts of at least $10,000.A source of income is also necessary, with students needing to show they have at least a part-time job. Graduates must also show they have a means to repay the consolidation loan. Once this is confirmed then, the business of buying out the college loans can begin.Selecting the Best ProgramJust like any other loan provider, it is important to check out the reputation a lender that may offer a competitive college loan consolidation program. Unsurprisingly, the Internet is full of private program options but any unfamiliar lender needs to be confirmed as trustworthy. So check out the BBB website before applying to them. Federal lenders should be fine since they are applied to through the financial aid office on campus.Clearing college debts is something any lender will warm to, especially if they were the ones that granted the college loans in the first place. When looking online, it is also important not to accept the first deal on the list. Check the different details, including the interest rate and term of the consolidation loans, and assess which one boasts the greater affordability before selecting.