School loan consolidation provides you an opportunity to merge all your loans and pay only once for all of them. There are a number of options catering to almost everyone’s needs. These options are divided into the following two major categories:

Federal loan consolidation

Private loan consolidation
1. Federal:This type of school loan consolidation provides financial help to those who are enrolled at schools that participate in federal aid programs. By school we mean a two-year or four-year degree awarding public or private college, university or trade school.Consolidation can help reduce your student loan debt by fixing and reducing the interest rate on your loans. This loan option will also combine your separate loan debts into one package thus managing your debt paying options.Eligibility for federal loan:In order to qualify for federal consolidation, one should check out the following things before applying for it.
The candidate should no longer be enrolled in school (defined as being enrolled less than half-time)

You must be in the ‘grace period’ of the loan or must be actively repaying your loan.

Most consolidation companies require a minimum loan amount i.e. $10,000 is typical.
Types of Federal Loan:

Federal Family Education Loan Program: These are public-private loans aimed to deliver and administer guaranteed educational loans to parents and students. It provides the following types of loan for post-secondary education:

Stafford Loan: Stafford loan consolidation is a fixed-rate refinancing program that combines all your existing federal loans into one new loan.

PLUS Loan: PLUS loan consolidation is another form of federal school loan that allows you to pack all your PLUS loans previously taken to finance your kid’s education, into a single loan with a lower monthly payment.

Graduate Stafford Loan Consolidation: Graduate Stafford loan consolidation is a great financial tool for those who have recently graduated and are trying to pay off their graduate Stafford loans.

Federal Direct Consolidation Loans: Federal direct loan consolidation is a practical repayment tool that enables you to combine all your Federal Direct student loans into a single loan. Federal Direct loan offers the following consolidation options:
· Direct Subsidized Consolidation Loans: Thiscombines federal student loans eligible for interest subsidies, such as subsidized FFELP, Direct Loans and Federal Perkins Loans.· Direct Unsubsidized Consolidation Loans: Thiscombines federal student loans not eligible for interest subsidies. If any one of the loans to be consolidated is unsubsidized, then you are eligible for Unsubsidized Direct Consolidation Loan.· Direct PLUS Consolidation Loans: Thiscombines FFELP PLUS and Direct PLUS loans.Benefits of Federal Loan:Various benefits can be availed if you opt for federal program. Some of them are stated below:
Reduces monthly payments

Provides fixed interest rates

Requires only one payment every month

Improves credit rating

Offers flexible payment options

No pre-payment penalties
Disadvantages of Federal Loan Consolidation:If compared to the benefits, consolidation has lesser disadvantages, which are mentioned below:
Takes long to pay back

Increases the total amount of loan

Locked interest rates i.e. if interest rates go down, your rate will not decrease/change

Lose benefits (if any) from previous loans
2. Private loan :The purpose of private loan consolidation is more or less the same as that of federal loan consolidation but the procedure and features differ. It combines only your outstanding private education loans into one package. Private loans cover educational expenses like tuition, accommodation or any other educational expenses.Eligibility for private loan consolidation:As there are few eligibility rules to qualify for federal loan consolidation, similarly the private loan levies some regulations on every application that it receives for necessary approval. These criteria are mentioned below:
The candidate should be atleast half-time enrolled in a degree or technical/diploma program

Have a minimum of $10,000 in private educational loans

Is in repayment status of private education loans at the time of application

Have good credit standing

Have proof of accommodation and present income
Benefits of private loan:
Improves the payment history and credit score

Gives competitive interest rate against non-government loans

Provides a way to consolidate virtually all private and non-federal educational loans

Allows you to consolidate education-related debt as well as education-related credit card debt

Enable you to write fewer checks and may also lower down the monthly installments

Longer repayment term (up to 30 years in some cases)

Lower monthly payment
Federal loan versus Private – The Difference:Federal loan consolidation is a tool to refinance federal education loan only while Private loan consolidation is a way to refinance private education loan only. The main difference is that a federal loan consolidation comes with a fixed interest rate while private loan consolidation comes with a market rate that may be fixed or variable.If you consolidate both federal and private loans, you should make sure to keep them separate, i.e. refinancing a federal loan with a private loan will most likely result in a much higher interest charge, if compared to the amount you would pay by keeping them separately.Our Advice: Research thoroughly about all consolidation options first and only then choose to consolidate your school loans.

Qualifying for a loan on an investment property can be difficult for several investors, considering the rules and regulations required to meet, financial concerns for a down payment or credit ratings to qualify for a particular loan, so as you continue on in this article find out the difference and breakdown of conventional and non-conventional loans to give you a better sense of what to expect as you apply for a home loan.Conventional LoansConventional loans are any mortgage loan that is not guaranteed or insured by the federal government however they are considered to be mortgage loans that follow the guidelines of government sponsored enterprises (GSE), such as Fannie Mae or Freddie Mac. The conventional loans are then broken down into conforming or non-conforming loans.Conforming loans follow terms and conditions set by Fannie Mae and Freddie Mac.Non-Conforming loans do not meet the requirements of Fannie Mae or Freddie Mac, but still considered conventional loans.The conventional loan is typically recommended if the investor is unsure of their credit score or not financially stable to make a significant down payment. This loan is ideal for investors who need flexible payment options or looking to receive low closing costs.Requirements of a Conventional Home – The home buyer must invest in at least 5% -20% of the sale price in cash for the down payment and closing costs. For example, if the sale price is $100,000 the home buyer is required to invest in at least $5,000 – $20,000.Eligibility – This loan can be used to finance primary residences, second homes and investment properties, along with capabilities to purchase warrantable condos, planned unit developments, modular homes, family residence of 1-4 and manufactured homes.Conventional Programs Offer the Following Loans – Fixed rate loans – Most often Conventional Mortgages are fixed-rate mortgages and typically your interest rate will remain the same during the entire loan period. Of course in a fixed rate Conventional Mortgage you will always know the exact amount on your monthly payment and how many payments remain.Adjustable rate loans – The initial interest rates and monthly payments for an adjustable rate mortgage (ARM) are relatively low, but can change throughout the life of that loan.Non-Conventional LoansThe non-conventional loans are just the opposite of conventional loans, as there can be several surprises appearing not to mention taking into consideration the adjustable rate mortgage (ARM) on this type of loan. The surprises of non-conventional loans are particularly directed towards those who are under in their mortgage. If you are considered to be one of those homeowners underwater in your mortgage find out if you’re required to any of the following:1. Change in future interest rates2. Loans of interest and principal never go down3. Large payment due at the end of loan4. Lender has authority to change amount you pay if certain instances occur.The adjustable rate mortgage (ARM) begins with a rate that may start off low and could go lower, or higher, depending on several factors. This is the unknown for how much you will pay on the future of this loan. Two other types popular unconventional loans include interest only loans, and loans with a balloon payment (a big payment at the end of the loan period).Requirements of a Non-Conventional Loan – According to Mortgage311, federally backed non-conventional mortgage loans frequently come with low or even no down payments as well as lower credit score requirements. For example, down payment requirements for FHA-insured mortgage loans can be as low as 3.5 percent. Qualifying credit scores for non-conventional mortgages, however, can be as low as 540, though lenders typically require a 640. Depending on the non-conventional mortgage loan product, interest rates may be higher than conventional mortgage rates.Eligibility – Applicants for this loan will need to meet requirements, as not every loan product insured or guaranteed by the federal government is open to every homebuyer. For example, VA mortgages are only eligible to military veterans or family members. Mortgage loan products offered by the USDA typically are available to low-income rural homebuyers. The federal government’s main non-conventional loan product, the FHA loan, is open to almost all first-time homebuyers.Whichever loan you choose or are required to apply for, be sure to do your research and understand the benefits, consequences and requirements before you become a home buyer. This breakdown of Conventional and Non-Conventional Loans should help prepare you for the “surprises” before unexpected interest rates rise or large payments are due at the end of your home loan.