Perkins Loan Consolidation 2
Interested in Perkins Loan Consolidation?
Perkins loan consolidation may be necessary for college students that find themselves in overwhelming debt. What should you know about debt consolidation as well as the nature of Perkins loans? Perkins loans are a loan provided by the federal government. It was a loan created especially to give college students more opportunities to pursue higher education. Perkins loan consolidation is not the same thing as federal loan cancellation, which allows students to eliminate their debt based on volunteer work. For example, some students can accept a job teaching in low-income schools, and cancel part of the debt for every year they teach full time.
In contrast, debt consolidation helps students to manage debt, not write it off. Perkins loan consolidation can help students by stretching their terms out for a longer period of time. Not only will this release the student from the pressure of repayment; it will also reduce the total monthly payment, improving a student’s cash flow. You can certainly see the difference in cost between a 10-year loan and a 30-year loan, right? A Perkins loan consolidation opportunity can increase the term period so you can have as much time as you need to repay the loan.
You are basically refinancing your student loan when you seek a debt consolidation plan. Some students have reported very favorable results in this option, sometimes eliminating as much as 50% of their debt. Perkins loan consolidation may have a few different payment plans. For example, you could pay according to a graduated payment plan, which starts off with lower costs and then gradually increases as you approach the end of the term.
You even have the option to consolidate your Perkins loan with other loans, such as supplemental educational loans and credit cards. The only disadvantage of these types of loans is that the interest rate often goes up. While no one enjoys paying interest, it is a fair exchange for an increased term. The lender you work with may even be able to negotiate a reduced payoff and save you some money.
Not every student will qualify for federal student loan forgiveness, so Perkins loan consolidation may be your best option. The important thing to remember is that you do have opportunities open to you. Never consider dropping out of college as your only option. You are in debt for a reason-because you want a higher education. Never let go of that dream. Just reach out to someone that can help.