College Loan Consolidation Eligibility Depends on 6 Key Issues

Apr 29 08:38 2013 Melissa Kellet Print This Article

Access to college loan consolidation is not a breeze through, with students and graduates alike needing to qualify first. Eligibility is calculated by applying a number of conditions, ensuring only those in need benefit.

It would be nice to think that access to college loan consolidation is open to practically any student or graduate with a large amount of debt to clear. But the reality is that,Guest Posting as is the case with all financial programs, there is a need to qualify before benefiting from any such offer. So, not every student with loans to repay is eligible.There is no doubt that clearing college debt is not going to be achieved simply or quickly, but only through a careful and dedicated plan. This is where a consolidation agreement comes into play perfectly, ensuring that a new and improved repayment scheme, with lower repayment sums required, is adopted to the benefit of the student.However, it is essential that the facets of these agreements are looked at carefully before agreeing to them. In this way, college loans can be fully repaid in a structured and assured way.What Is Needed to QualifyThe eligibility for a college loan consolidation agreement for privately issued loans, depends on a number of criteria - in fact, six in total. These range from the amount of debt to the status of the loanee, but can be broken down to the following three-point status list.Student Status - all students seeking a consolidation agreement to help in clearing college debt must be over the age of 18, and be a US citizen or, if not, have permanent residency.Debt Status - the degree of debt that an applicant for a consolidation loan is under also has an influence. For example, only applicants who have a private loan of a minimum of $10,000 will be considered. Debt that is lower may not be enough to qualify.Repayment Status - the applicant needs to have sufficient income to make repayments on the improved loan, be of sound credit standing, and should also already be subject to a repayment schedule with an existing college loan.The Benefits of ConsolidationOf course, there is no point in seeking a college loan consolidation agreement for private student debt if there is nothing to gain from it. The simple fact is that there is a considerable amount to gain from making the move.On the face of it, being able to lower the monthly repayments and make the entire debt more manageable are the main benefits, but specific conditions are more detailed. For example, clearing college debt is made easier by the fact that a variety of debts can be brought together, not just existing loans.This means that the credit scores of students can also be improved, which leads to better interest rates with later loan agreements. There are often little or no hidden expenses or fees with these deals.In some cases, the interest rates that students must pay can be reduced by over 5% when compared to the rate being paid on the original college loans. And often, the loan interest is actually deductible from federal income tax.Giving Students a BreakPerhaps the most attractive feature however, is the fact that college loan consolidation agreements can be struck while still in college. So, instead of having to wait to graduate to handle the growing debt, it is possible to get to grip with early.Not only that, but a grace period - much like the one already provided with college loans - are not lost, with many private lenders offering consolidation services agreeing to wait for repayments to begin from graduation.However, the most important factor is that clearing college debt becomes far more affordable than before, and the risks to both lenders and borrowers are reduced considerably. That is the good news.

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Melissa Kellet
Melissa Kellet

Melissa Kellett has a Master in Finance and has been a university teacher as well as a financial consultant for years. She specializes in Bad Credit Loans Guaranteed and also in helping people to get approved for home loans, guaranteed loans, bad credit auto loans, guaranteed credit cards, Bad Credit Mortgage Loans among many other financial products. For further information, please visit

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