How student loan work

Consolidation Loans combine several student or parent loans into one bigger loan from a single lender, which is then used to pay off the balances on the other loans. It is very similar to refinancing a mortgage. Consolidation loans are available for most federal loans, including FFELP (Stafford, PLUS and SLS), FISL, Perkins, Health Professional Student Loans, NSL, HEAL, Guaranteed Student Loans and Direct loans. Some lenders offer private consolidation loans for private education loans as well.

Education costs money! It’s a simple, but sad fact. Sad for those who don’t have the money. After all, how can they get ahead in life? How can they move up on the corporate ladder? How can they earn the money a professional earns?

Doesn’t every parent want his child to get a good education? Doesn’t every mother and father want their sons and daughters to become doctors, lawyers, rocket scientists – just something that’ll earn them a rewarding income (and then maybe the kids will take care of the parents!). But how can that possibly happen when the road to that success is paved with gold – gold that they have to pay! It just doesn’t seem fair.

But hold on. You have the backing of your federal government. They understand the challenges you meet while trying to get an education. They know that costs are continually rising, making it harder and harder for you to afford higher education. And they’re on your side. They’ve created a number of financial aid programs to help you get that education you so strongly desire. A number of those programs involve student loans.