Phoenix, AZ -- (SBWIRE) -- 09/18/2013 -- Looking for debt consolidation of student loan debt? Most graduates are after about a year out of school, so Credit-yogi.com is here to point out some important facts about this process, including:

Consolidate Student Loan Debt with Quick and Easiest Way and Enjoy Debt Free Life!

- Where to Consolidate Federal Loans
- How to Merge Private Loans
- Filling Out the Application
- Post-Application Actions

Consolidating Federal School Loans

Perkins, Stafford, Direct subsidizes and unsubsidized, and Supplemental Loans for Students (SLS) can all be merged together, so if debt consolidation of student loan debt is what one is seeking, here are some tips about how to go about it. These loans can be combined upon leaving school, dropping to less than half-time enrollment, or after graduating. If one is in default, he must make agreeable payment arrangements with his current loan services or agree to repay his new loan under the Income-Contingent or Income-Based Repayment Plan.

Private Loan Combining

With the knowledge that debt consolidation of student loan debt does not allow private and Federal loans to be combined, it’s a good idea to know how to merge private loans. This can be done by applying with the original lenders. The main benefit of consolidating private student loans is getting a single monthly payment, rather than several separate ones. It is also possible that one can get a lower interest rate on the consolidation loan than he had on his individual loans, which may make his payment less than they were prior to consolidation.

Applying for Consolidation

The first thing one must do when seeking debt consolidation of student loan debt is fill out an application and promissory note. This is required, and contains basic information about the applicant, two references, and other pertinent data. From there, be sure to save the application and promissory note for future reference. Information on all loans to be merged is necessary, and calculating the amount of the single payment will be helpful. Be sure to have one’s federal PIN number handy, as well.

After the Application

Once the debt consolidation for student loan debt application is completed, it is evaluated, given a document number, and entered into the federal loan consolidation system. The review board then contacts one’s current lenders to ascertain the loans’ eligibility for consolidation. One must continue to make his payments until he is notified in writing that his application has been approved. Additionally, if the repayment option selected by the borrower is the Income-Contingent Repayment Plan, the review board will initiate contact with the IRS to determine the amount one will pay.

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