Are you swimming in a sea of debt due to interest on your monthly student loans? Do you constantly worry your head over financial problems even if they aren't there yet? There is a solution to this problem. Your new hero in this battle is student loan consolidation.
What is Student Loan Consolidation?
Student loan consolidation simply means consolidating all your student loans into a single loan with a monthly payment plan. In short, you will only be paying for one loan as all your old student loans are condoned, meaning you only pay one monthly payment.
Benefits of Student Loan Consolidation
Here are some of the benefits of student loan consolidation
Lower monthly payments
By consolidating all your student loans into one loan, you only need to pay off one loan monthly instead of several student loans monthly. This would therefore reduce your monthly payments.
One monthly payment for your student loan and nothing more than that
It is a lot easier if you have to manage only one student loan instead of several student loans with different payment deadlines. You wouldn't want to fall back on your student loan payments just because you forgot one deadline.
Your interest rate is fixed
By consolidating your student loans, you will be able to take advantages of low, fixed interest rates. As of the present, 8.25% is the highest possible student loan consolidation rate. This may be the best time for you to apply for such a loan, because national interest rates happen to have hit a forty-year low as of late.
No need for a credit card or surcharges
You do not need a credit card when applying for a student loan consolidation. And because payment terms and conditions are flexible for the most part, your lender can tailor-fit your loan according to the size of your budget.
Electronic payment available for your monthly student loan
While it is not necessary to make payment electronically, most lenders will knock 0.25% off your student loan rates if you make payment electronically. When you make payment electronically, it is done via direct debit, therefore there would be no excuse for you missing your due date.
We do admit that it can the qualifications for a student loan consolidation are still a major point of contention. The official stand from the government is that students who are still in their grace period or who are still studying in school may qualify for government student loan consolidation
Compared to the private sector, government student loan consolidation usually offers better rates, so it is quite obvious that government student loan consolidation is a better first option. However, both government and private sector have their advantages, and you would do good at the end of the day to opt for student loan consolidation.
What is Student Loan Consolidation?
Student loan consolidation simply means consolidating all your student loans into a single loan with a monthly payment plan. In short, you will only be paying for one loan as all your old student loans are condoned, meaning you only pay one monthly payment.
Benefits of Student Loan Consolidation
Here are some of the benefits of student loan consolidation
Lower monthly payments
By consolidating all your student loans into one loan, you only need to pay off one loan monthly instead of several student loans monthly. This would therefore reduce your monthly payments.
One monthly payment for your student loan and nothing more than that
It is a lot easier if you have to manage only one student loan instead of several student loans with different payment deadlines. You wouldn't want to fall back on your student loan payments just because you forgot one deadline.
Your interest rate is fixed
By consolidating your student loans, you will be able to take advantages of low, fixed interest rates. As of the present, 8.25% is the highest possible student loan consolidation rate. This may be the best time for you to apply for such a loan, because national interest rates happen to have hit a forty-year low as of late.
No need for a credit card or surcharges
You do not need a credit card when applying for a student loan consolidation. And because payment terms and conditions are flexible for the most part, your lender can tailor-fit your loan according to the size of your budget.
Electronic payment available for your monthly student loan
While it is not necessary to make payment electronically, most lenders will knock 0.25% off your student loan rates if you make payment electronically. When you make payment electronically, it is done via direct debit, therefore there would be no excuse for you missing your due date.
We do admit that it can the qualifications for a student loan consolidation are still a major point of contention. The official stand from the government is that students who are still in their grace period or who are still studying in school may qualify for government student loan consolidation
Compared to the private sector, government student loan consolidation usually offers better rates, so it is quite obvious that government student loan consolidation is a better first option. However, both government and private sector have their advantages, and you would do good at the end of the day to opt for student loan consolidation.
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