Income is limited these days for everyone, who struggles to maintain the standard of living. In the past, loans carried you through college, but now that you're out these debts have come out to haunt you. You may be contacted by various debt collectors and left a frantic mess seeking someone who can help you with a school loan consolidation.

A good deal of students that have just finished their education and are currently looking for jobs try for federal school loan consolidation first. This loan has a great deal of benefits. First, the government is the source of this loan but it is issued by private lenders. That means that the time you have to repay the loan can be extended for a long duration.

Maybe the most tempting aspect of school loan consolidation is that the multiple student loans are substituted with just one loan. The overall sum of the debt is reduced; at times this reduction can even go up to 60%. This, of course leads to reduction in your monthly payment.

Even better, the new rate of interest is determined by the weighted average of the rates that are applied on your present loans. In addition you'll get rid of the mental stress associated with remembering the details about multiple loans. Consolidation does not require a cosigner or any checking of the credit score, and you can utilize this opportunity to improve the credit score or rating.

The only drawback is it is hard to prove yourself eligible for the federal school loan consolidation if you are delinquent or in default. Regulations from the official Federal Education Website include:

Eligibility Requirements:

1. To qualify for a DirectConsolidation Loan, borrowers must have at least one Direct Loan orFederal Family Education Loan (FFEL) that is in grace, repayment,deferment or default status. Loans that are in an in-school statuscannot be included in a Direct Consolidation Loan.
2. They mustmake satisfactory repayment arrangements with the current loan holdersor agree to repay their new Direct Consolidation Loan under the IncomeContingent Repayment Plan.
3. Borrowers who do not have Direct Loans may be eligible for aDirect Consolidation Loan if they include at least one FFEL Loan andhave been unable to obtain a Federal Consolidation Loan with a FFELconsolidation lender or have been unable to obtain a Federal Consolidation Loan with income-sensitive repayment terms acceptable to them or intend to apply for loan forgiveness under the Public Service Loan Forgiveness Program.
4. Borrowers who have only a Direct Consolidation Loan cannot consolidate again unless they include an additional loan

 The standards to be qualified for this loan can be tricky to navigate through, leaving many ineligible for the loan. Nevertheless, it is worthwhile to check to see if you qualify. It could be a good resource for protecting your finances in the future.