San Diego, California (PRWEB) June 16, 2013
There are six student loan consolidation programs available in the United States. A few of the qualification factors that decide what program each person will qualify for include their income, family size and if they have a hardship in their household. This article will take a closer look at how these student loan consolidation programs work.
“Most college students or graduates are either unaware of how the student loan debt consolidation works, or they are turned off because of how complex the procedure and paperwork is,” according to Paul Paquin the CEO at Golden Financial Services.
A person must get re-approved every year for the consolidation student loan program, which adds to the complexity of the process.
If a person has a hardship situation and low-income, their student loan program will be tailored around those circumstances. On the other side of the coin, a dentist or doctor who just graduated college and doesn't have a hardship situation, may get approved for a different program.
The loan programs are also based on the size of a person’s family.
Most people’s situation and income change over the years and that is why these documents must be resubmitted annually.
Student loan consolidation can help even those people that have student loans in default, and within 4-8 weeks the default status can even be removed, where the loans will then be reported “paid in full” with the credit reporting agencies.
It is important that students take action right away if their loan is in default. If they continue to ignore their student loans in default, their wages can eventually be garnished.
A debt relief company can help college graduates with getting approved on a student loan consolidation plan. Companies will prepare the necessary documentation for the students, and ensure they are signed up on right program, with the lowest possible monthly payment.
Like with any debt relief program, it is always recommended that a person checks out the company with the Better Business Bureau and the Chamber of Commerce in their area to ensure they are a reputable company.
The 4 most common federal student loan debt consolidation programs include the Standard Repayment Plan, Graduated Repayment Plan, Income Based Repayment (IBR) and Income Contingent Repayment Plan (ICR). These options depend on a person’s income, family size and hardship situation.
Pretty much all Federal Student Loans will qualify. The only loans that don’t qualify are Loans that are not guaranteed by the federal government, primary care loans, law access loans and PLATO loans.
Contact either the department of education or Golden Financial Services to sign up for the student loan debt consolidation program.
Consumers can also take a sneak peak at the updated page that explains what the unsecured debt hardship programs for 2014 will include here.
Consumers can also read more about the Student Loan Consolidation Programs Here.