Student Loan Consolidation Rebate is Most Common ?

Rebate is normally given in federal student loan consolidation program. The best part about this consolidation program is that you have a choice of extending your repayment term. By extending repayment term, you can easily improve your credit score.

The kind of rebate you are going to get in this consolidation program is set by the U.S. Department of Education. Therefore, you do not have to worry about any kind of partiality, as the terms and conditions are equal for all the students. This is not the case with private student loan consolidation where terms and conditions vary from one lender to another.
If you are interested in getting a private student loan consolidation program, shopping around is the key. Make sure that you take quote from at least five or ten lenders. Checking the reputation of the lender is also quite important in private student loan consolidation, as there are thousands of private lenders operating in the market.
The best way to do this is in the form of reduction in interest rates. This benefit is normally offered to students in two parts. First and foremost, a .25 per cent reduction for auto debit and secondly a 1 per cent interest rate reduction after three years of on-time payments. In other words, it is of paramount importance that you pay all your dues on time because then only you will be able to get concession in interest rates.
In case if you are struggling in financial front, it is advisable that you go for a grace period. When you opt for a grace period, you do not need to pay any money to the lender. Your repayment term will start once again when your grace period is over. Point to be noted here is that no financial penalty is going to impose on you during the grace period.
You will get more benefits in your student loan consolidation program when your credit situation is up to the mark. Therefore, it is recommended that you improve your credit situation first before going for a student loan consolidation rebate.