« Federal Consolidation Loan | Accueil | Federal student loan and age of majority »



Federal student loan consolidation

The federal student loan consolidation, also called reorganization or regrouping of appropriations, is a financial solution which tries to answer an excessive debt position. The objective of the federal student loan consolidation of appropriations is to decrease the global amount of monthly refundings. The federal student loan consolidation can make it possible to reduce the monthly payments, but by increasing the duration of refunding.

This solution consists in substituting one or more already existing appropriations by only one and single credit, ata rate if possible less low, but redeemable over one more important duration in adequacy with the incomes of the borrower. The private individuals can thus try to find a solution viable with their over-indebtedness.

The federal student loan consolidation of appropriations in Europe. In 2006, incur it renegotiated appropriations rose to 340 billion euros. They amount to 83% of incur in the United Kingdom and 5% in France. More than 2 000 brokers, specialized establishments and banks general practitioners carry on this activity

The standard profile is a private individual equipped with monthly incomes ranging between 1 500 and 3 000 euros. The reorganization of their debts enables them to decrease overall their monthly payment from 30 to 50 %, with the help of a substantial lengthening of their duration of refunding. The expenses of the renegotiation represent between 1% (banks general practitioners) and 8% (brokers) of the amount of the new loan according to the countries. If there is a recovery mortage holder and/or the intervention of a notary or a lawyer, the amount of the expenses can be much more important.

Initially he was exerted in a confidential way by only some establishments like the Building and loan association of Alsace-Lorraine or Créatis, but this activity developed much since the beginning of the years 2000 with the arrival on the market of the large banks general practitioners. In 2007, it would have represented nearly 30% of the production of appropriations and would have related to a few 5 million particular customers.