ACS Student Loans Consolidation - Pros and Cons Explained

Loans provided by the government have given students the opportunity to obtain a college education. But in some occasions, this has also brought many individuals and households close to financial ruin. To address this problem, services like the ACS student loans consolidation are being offered as a practical way to help people get out of debt.

For starters, loan consolidation means combining eligible student loans into a single loan. This will eventually make payments for these loans more affordable and simpler. This can lead to more savings for the borrower enabling them to manage their finances better.

Several types of loans may qualify for loan consolidation through ACS including federal unsubsidized and subsidized Stafford loans, federal PLUS loans, and federal direct loans, just to name a few.

There are few requirements to note in order for borrowers to qualify. The total loans combined should have a minimum amount of $20,000. Borrowers should have a good record of being up-to-date with their payments and none of the loans should be in default.

Only borrowers who have graduated and those under specific clauses are eligible and students currently enrolled are not qualified.

Indebted students can gain countless advantages from this kind of debt consolidation. Different lenders including ACS may differ in some terms -- but generally offer the following things.

The borrower may avail herself of longer repayment period for their loans. The package offers different repayment term options from 10 to 30 years. Monthly payments may also be fixed or varying - depending on the borrower's financial condition.

There is only one required payment every month. Borrowers just have to write a single check to a single lender. This means less hassle as the paperwork is simplified.

There are no additional fees in applying for consolidation and no prepayment charges involved.

Lastly, it allows the borrower to lock in on a low fixed interest rate for the life of the loan potentially reducing monthly payments by up to 50%.

Much like any other loan, there could be some potential disadvantages that could also result from loan consolidation. This includes a longer period for repayment and higher interest costs.

Due to the extended term of the loan, it may take a longer time to repay the loans altogether. Because of this, the accumulated interest cost over the life of the loan will result to a higher amount.

However, as the economy continues to recover, borrowers are encouraged to explore practical options such as the ACS student loans consolidation that will give them more flexibility in managing their money.