Are you sick of forking over interest on your monthly student loans with no end in view? Frightened of cash-flow difficulties that might prevent you from paying your student loans on time? I understand I was and there can be a remedy to this problem. It is known as student loan consolidation.
Exactly what is Student Loan Consolidation?
Student loan consolidation just means consolidating all your student loans into a single loan with a monthly payment plan. In effect, all of ones previous student loans are written off and your new student loan will be crafted which you have to pay off once a month.
Rewards of Student Loan Consolidation
The following are many of the rewards of student loan consolidation
1. Smaller monthly payments
Through consolidating all ones student loans into a single loan, one just have to pay off a single loan monthly rather of many student loans monthly. Consequently, ones monthly payment will be reduced
2. Pay only one loan per month instead of numerous student loans per month
It is a great deal easier if you have to manage simply one student loan instead of a number of student loans having different payment deadlines. Additionally, sometimes with several student loans, one might end up forgetting to pay one student loan.
3. Decreased, fixed interest rate
Simply by consolidating your student loans, you may be capable to take advantages associated with reduced, fixed interest premiums. Currently, by law, student loan consolidation interest rates are unable to exceed 8.25%. Moreover, national interest interest rates are at a 40-year low therefore this may be a great point in time to obtain one.
4. No credit card check or processing fees
No credit card check will be necessary through the application of a student loan consolidation. The payment plans and terms can be normally very flexible in that they can personalize it relating to your financial position.
5. Make once a month student loan payment electronically
While it may be not required to make payment electronically, most lenders would knock 0.25% off ones student loan premiums if you make payment electronically. Additionally, utilizing direct debit from ones payment account will prevent one from forgetting to make your payment.
Sometimes it may get quite confusing as to the qualification of applying for any student loan consolidation. The official stand from the government is that students which are now in his or her grace time period or who happen to be still studying in college might qualify to get government student loan consolidation
The government student loan consolidation nowadays may be fairly competitive compared to private sector, therefore I would certainly recommend going for a government student loan consolidation. With so many advantages of obtaining a student loan consolidation, it is pretty clear to conserve money in the long run is to acquire one.